FCMs split over capital for client clearing promises

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Dealers are divided on whether the commitments offered to clients by their clearing businesses should attract a capital charge. Some argue existing guidance from the US Securities and Exchange Commission (SEC) implies capital should be held, while others believe there is no current requirement to do so, but regulators will introduce a charge. A third group argues no charge applies. The different approaches are affecting pricing and other terms for the service, which is causing confusion among cl

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