SEC capital rules could stunt CDS client clearing

stop-sign

Banks are threatening not to offer client clearing for credit derivatives in the US due to capital rules from the Securities and Exchange Commission (SEC), which they claim could cause a single missed margin payment by a client to result in the default of a bank's clearing arm.

Under the rules, US clearing members - known as futures commission merchants (FCMs) - have to take a capital charge on a customer's entire portfolio, ignoring any existing initial or variation margin posted by the client

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: