Suspend bank capital rules following an FCM default, CFTC told

Banks may be more likely to bid in post-default auctions if temporary capital relief is granted


Market participants want regulators to temporarily suspend bank capital requirements when a member of a central counterparty (CCP) defaults as a means to encourage the surviving firms to take on the positions of the failed member's customers.

A group of clearing experts tasked by the US Commodity Futures Trading Commission (CFTC) with recommending ways to strengthen CCP default management processes has discussed "whether there should be capital relief, at least on a temporary basis, for FCMs

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 [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a 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: