BoE: leverage ratio carve-out needed for clearing
Collateral should cut exposure, says BoE, citing need to ensure "continuity" of clearing business
The Bank of England (BoE) has become the first big central bank to come out in favour of a change to the treatment of cleared trades by the leverage ratio, claiming this is needed to ensure banks continue offering the service.
The leverage ratio is currently being reviewed by the Basel Committee on Banking Supervision ahead of its implementation in 2018, and its impact on clearing is one of the big questions. Banks claim the business is a money loser under the current approach, whereby client
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