Unlevel playing field for CCP members concerns banks

The CFTC has proposed a $50 million cap on minimum capital requirements for clearing members, a move that could open membership to a number of smaller financial institutions not subject to Basel capital rules. Some bankers warn this could create an unlevel playing field, particularly around the capital charge for CCP default fund exposures. By Laurie Carver

limbo-dancer

The pace at which new regulations are flying out of the door on both sides of the Atlantic has long worried bankers, who argue certain requirements may not have been fully thought through and may lead to unintended consequences. The rules around central counterparties (CCPs) are a case in point, reckon some observers.

On the one hand, the Commodity Futures Trading Commission (CFTC) is pushing for wider membership of clearing houses by proposing a cap on minimum capital requirements demanded by

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here