In the letter Settlements, the FOA has expressed its support for the letter sent to the Bank for International Settlements on behalf of EACH, ISDA and the IIF on outstanding concerns with the proposed rules regarding the capitalisation of exposures to CCPs. The FOA agrees with the need to amend regulatory regime and ensure that risks are adequately assessed and capitalised, but questions the value of a proposed regime which appears to penalise and as a result disincentivise, central clearing of certain contracts, counter to EU regulatory policy and the stated objectives of the G20. The concerns expressed by EACH, ISDA and the IIF are shared by the FOA and have been voiced by many of our own members.
