Basel to propose IM offset in leverage ratio

Four sources say draft will make concession; it could also revive EU-US segregation drama

Basel Trendline

The Basel Committee on Banking Supervision is about to wade into one of regulation’s longest-running beefs, with a consultation on how banks should treat client margin on cleared trades when calculating the leverage ratio.

Currently, initial margin (IM) cannot be deducted from exposure, generating heavy capital requirements for bank clearing businesses. But any concession – which banks, clearing houses and some regulators have been calling for since 2013 – is entangled in a separate

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