Indirect clearing rules too demanding, warn EU regulators
EBA and Esma call for clarity on capital relief for exposures to clearing members
Capital relief for indirect clearers is too difficult to obtain because of overly demanding prerequisites for ensuring there will be no losses on the exposures, according to top European regulators who warn clearing could become too expensive if the rules are not better defined.
"A bold statement like ‘there are no losses' is something you cannot say incontrovertibly and is really a factual question. You could say there is a legal framework that is intended or designed to cause no losses, but
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