Capital
Higher capital requirements for banking organizations have significant impacts on the ability of banks to provide clearing services for their customers. We are working with regulators to promote risk-reducing effects of clearing while at the same time, preserve a strong and diverse community of clearing firms.
FIA speaks on capital, exchange volatility controls before CFTC committee
FIA offered presentations before an advisory committee of the US Commodity Futures Trading Commission on 6 November, touching on best practices for exchange volatility controls and the potential impact of proposed capital reforms on OTC derivatives clearing.
CONTINUE READINGViewpoint - Disincentivizing clearing: It’s déjà vu all over again
In the wake of Silicon Valley Bank’s failure, U.S. regulators announced in July a proposal that raise the amount of capital required for the clearing of over-the-counter (OTC) derivatives. This is a dangerous move that disincentivizes hedging among businesses, runs counter to reforms aimed at preventing government bailouts, and increases costs for consumers and businesses.
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FIA joins other trade associations in industry response to second Basel consultation on cryptoassets
FIA also files a supplemental letter urging regulators not to penalise client clearing.
CONTINUE READINGFIA responds to proposed changes to EU Capital Requirements Regulation
FIA's response focuses on the uncertainty that the proposed new segregation condition brings for banks’ ability to offset initial margin for the purposes of calculating the exposure value under the leverage ratio framework for derivatives.
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