US regulator is talking to partners on a number of key regulatory issues
Timothy Massad, chairman of the Commodity
Futures Trading Commission, told FOW he is forging ahead in
talks with the relevant regulators and hopeful of striking
pacts on three key initiatives: supplementary leverage ratio
for banks; clearing equivalence with Europe; and rules for
margin on uncleared swaps.
Banks that provide clearing services have
in recent months become increasingly worried about the proposed
supplementary leverage ratio (SLR) that could dramatically hike
the cost of providing clearing services, a view shared by the
"We hope to work with bank regulators
because we are concerned the planned SLR could have a negative
effect on clearing," Massad told FOW.
The Federal Reserve and two other US
regulators said in September last year they had adopted a
change proposed by the Basel Committee on Banking Supervision
to the methodology regarding the inclusion of off-balance sheet
assets in the SLR calculation.
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