Banks try to copy Citi and UBS clearing leverage cuts

Tactic slashes exposure for FCMs, but could undermine lobbyists

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"Everybody's working with their accounting firms to get it done", but it's not so straightforward

Having spent the past year campaigning for a change to the leverage ratio, you might expect futures commission merchants (FCMs) to be cock-a-hoop about an accounting tweak that achieves a similar outcome – placing billions of dollars' worth of cash margin outside the ratio's clutches, and slashing required capital.

They're not. A number of FCMs are trying to copy Citi and UBS – the only banks known to be using the tactic, with Credit Suisse also said to have gained its auditors' approval – but

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