Panelists discussed the proposal to change the methodology used by Basel
The one-size-fits-all approach the Basel
Committee is taking to leverage ratio calculation could
unfairly hurt some trading firms at the expense of others,
experts said on an FOW Regulation panel on Thursday.
The panelists were discussing the
implementation of the Basel Committee's proposed leverage ratio
and specifically the methodology used by the regulator.
As it stands, the Current Exposure Model
is the preferred model but trade bodies and some trading firms
have this year been arguing that CEM should be scrapped in
favour of the Standardised Approach for Counterparty
Credit Risk (SA-CCR) method.
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