MEP: Basel too slow to deal with clearing capital clash

slow-moving_truck_breakdown_Getty — Long time coming: the industry has been calling for a change in the leverage ratio

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

An influential member of the European parliament (MEP) has hit out at the Basel Committee on Banking Supervision for being too slow to adjust its capital rules to deal with clashing clearing and capital requirements.

The G20 nations have required standardised derivatives contracts to be centrally cleared, but the leverage ratio counts cash initial margin posted by clients to clearing members as an exposure needing to be capitalised. The resultant capital costs have left some dealers reluctant

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 print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You already have an account with us*. Sign in below to continue.