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
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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