Banks fear US cross-product capital relief will fall short
Proposal to treat repo as futures for SA-CCR may not do enough to support UST clearing mandate
US prudential regulators proposed changes to capital requirements in March this year that should allow banks to recognise the cross-netting of repo and derivatives exposures. But experts fret the proposal will be unworkable without further tweaks.
“In our current reading of the proposal, our understanding is that this is very conservative and not efficient – and it’s probably too conservative to
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