Capital rules for CCP exposures could make clearing costs punitive, dealers conclude
The Basel Committee published a consultative document on December 20 that would require clearing members to attach a 2% risk weight to their exposures to CCPs and also to hold capital against their contributions to the default fund of the CCP – a pot of money that is kept in reserve for possible use in case of the default of a clearing member.
Market participants have until February 4 to submit their feedback to the Basel Committee, but dealers have already suggested the proposal is ill
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