Banks try to copy Citi and UBS clearing leverage cuts
Tactic slashes exposure for FCMs, but could undermine lobbyists
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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