NY Fed's Dudley fears CCP capital 'cliff effect'
Supervisors should ensure the capital regime for cleared trades avoids a sudden leap in risk weights, says New York Fed president
Capital requirements for cleared trades should not leap suddenly if a central counterparty (CCP) is judged to have stopped complying with global minimum standards – a potential outcome of existing proposals, according to William Dudley, president of the Federal Reserve Bank of New York.
Capital rules for cleared trades are being drawn up by the Basel Committee on Banking Supervision and offer
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