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Fed’s Basel III rollback gives clearing units a capital break
Client-cleared trades will be exempt from CVA charges and G-Sib surcharge calculations
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US regulators have ditched plans to increase capital requirements for derivatives clearing businesses as part of their Basel III endgame package.
Michael Barr (pictured), the US Federal Reserve’s vice-chair for supervision, announced extensive changes to bank capital rules proposed last year in a speech at the Brookings Institution earlier today (September 10). The revisions mean capital requirements for the largest US banks are now expected to increase by 9% when the rules take effect, down from
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