EU banks fear capital hit from CCP approval delays
For banks to apply a 2% risk-weight, non-EU CCPs must be approved by Esma and their home-country rules by the EC. That process has to be complete by June 15 but banks now fear that will not happen in some cases
European banks fear delays to Europe's approval regime for central counterparties (CCPs) could lead to big jumps in capital for trades cleared at a number of non-EU venues.
Europe's version of Basel III allows banks to treat non-EU clearers as so-called qualifying CCPs (QCCPs) until June 15, meaning cleared exposures receive a rock-bottom 2% risk-weight. Market participants initially expected
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