New EU bank rules threaten Eurex, LCH investment policies

CCPs with EU bank licences currently run leverage ratios of less than half the minimum

Derivatives central clearing counterparties (CCPs) that hold banking licences in the European Union are in line to be subject to new capital and liquidity ratios designed for banks, under proposed amendments to the EU’s prudential framework that ignore advice from supervisory agencies.

In particular, the imposition of the leverage ratio could force CCPs to substantially increase their equity capital, change the way they invest the cash margin they receive, or push members to post more non-cash