JP Morgan urges clients to compress over G-Sib fears

Bank trying to mitigate impact of draft Federal Reserve rule change on clearing business – others are said to be doing the same

Compressed is best?

JP Morgan is encouraging its clearing clients to compress their over-the-counter derivatives positions, in a bid to avoid a jump in its capital requirements threatened by an incoming rule change drafted by the Federal Reserve.

The August 24 proposal from the Fed would require banks to include all cleared derivatives transactions in its banking organisation systemic risk report, known as FR Y-15. The report is used to calculate the capital surcharge for the eight US global systemically important