Following his keynote address at the 41st annual International Futures Industry Conference in Boca, CFTC Chairman Tim Massad and FIA president and CEO Walt Lukken discussed leverage ratio, its impact on the cost of clearing, and the potential implications for FIA members.
Massad noted that the Basel Committee will be issuing a request for data on the impact of the leverage ratio on the cost of clearing.
He added that the CFTC conducted an exercise with three FCMs to estimate the impact of the leverage ratio on the portability of positions in a default scenario, and said getting "good data and analysis" will be critical as regulators review this issue.
