Leverage Ratio

Will leverage ratio cause an FCM concentration crisis?

+0
31 Views
 
Risk magazine editor Duncan Wood makes a good point in his article The invisible incentives of clearing (subs. required) - the FSB / BIS ignored leverage ratio effects in concluding that incentives are in place for clearing both on banks self-clearing their trades and on FCMs clearing trades for clients.  In this post I look at the FCM capital cost problem and whether changes to bank capital rules alone can deliver an economically sustainable future for FCMs.
Share
Category

Weekly Roundup | Risk Management, Market Infrastructure & Technology | 6 March 2014

+0
8 Views

Risk Management

DB Adjusts Legal Structure | Fed Intermediate Holding Company Rules

Share
Category

Weekly Roundup | US & International Regulation | 6 March 2014

+0
9 Views

US Regulation

US Banks Fear Competitive Impact of Higher Leverage Ratio

US regulators have pledged to adopt the new Basel leverage ratio, but with higher minimums, sparking concerns that US banks will find it harder to compete in repo and other businesses. Lukas Becker reports. Risk: US Banks Fear Competitive Impact of Higher Leverage Ratio.

 

Share
Category

Weekly Roundup | Collateral & Risk Management | 6 February 2014

+0
7 Views

Collateral Management

 

Central Clearing Calls for Effective Collateral Management

As Central Clearing is more and more widely adopted around the globe, collateral, especially highly liquid collateral, is in high demand. Capco: Central Clearing Calls for Effective Collateral Management.

 

Share
Category

The first FCM faller | BNY bags client clearing

+0
14 Views

According to this IFR story, BoNY Mellon has cut its OTC clearing business due to "market and regulatory factors that will limit our ability to grow the business".

Share
Category