US eases leverage ratio impact on swaps

JP Morgan says new approach boosted ratio by up to 20bp

federal reserve
The Federal Reserve in Washington

US banks will have greater freedom to net cash margin against over-the-counter derivatives exposures under last week's proposed revisions to the US supplementary leverage ratio (SLR), bringing down the capital needed to support OTC market-making desks. The changes have already raised JP Morgan's SLR by up to 20 basis points when compared with the international version of the leverage ratio – agreed by the Basel Committee on Banking Supervision in January – and non-US banks hope their regulators

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: http://subscriptions.risk.net/subscribe

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 Risk.net 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: