Basel tries to create clearing pull with new capital rules
Dealers say rules for default fund exposures are an improvement, but risk weights are not tied to "real default probabilities"
The Basel Committee on Banking Supervision has revamped its capital rules for cleared exposures after deciding an interim regime published last July had "fallen short of the desired objectives", producing a range of charges that was difficult to justify. Regulators feared the rules could have removed incentives for derivatives market participants to use central counterparties (CCPs) – a fear
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