US dealers slam capital hit on clearing for unreal CVA risk
Fed would diverge from Basel standards by imposing CVA capital on client-cleared trades
US banks warn that proposed prudential regulations could force them to capitalise a risk from their clearing clients that may not even exist. Sources say it could increase costs for end-users of cleared products, and potentially reduce capacity in the business at a time when US markets regulators are looking to broaden clearing mandates.
“We’re concerned that if this rule moves forward without
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