Exchanges warn on clearing concentration

Clearing houses urge margin offset in leverage ratio, adoption of SA-CCR and recalibration of NSFR

richard-metcalfe-isda
Metcalfe: "Why have a situation where one model or approach is squeezed?"

The World Federation of Exchanges (WFE) has called on regulators to allow initial margin to have an offsetting effect on banks’ leverage ratios in order to urgently remedy the growing market concentration of clearing members. The body is also suggesting changes to punitive funding rules for banks and demanding an end to delays in implementing the new counterparty credit risk framework.

A recent study by the Financial Stability Board (FSB) found that 21% of dealers believe the leverage ratio

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