Basel proposals reduce need to sign guaranteed portability agreements

Changes to bank capital rules on CCP exposures remove the need for bank clients to enter into contractual agreements to port trades to other clearing members

Revisions to proposed capital rules on central counterparty (CCP) exposures reduce the need for banks that clear via a clearing member to enter into contractual agreements with another dealer, to accept their cleared trades in the event of a default of the original clearing member.

A previous consultation paper, published by the Basel Committee on Banking Supervision last December, had stipulated that bank clients that clear via a clearing member can only apply preferential risk weights for