Today the Group of Central Bank Governors and Heads of Supervision (GHOS) of the Basel Committee on Banking Supervision announced a delay in their planned January meeting to review the latest package of proposals on capital requirements. FIA has been actively engaged on the leverage ratio component of the Basel III capital requirements, which could have a significant negative impact on client clearing. In July, FIA shared a report with the Basel Committee that showed that the current proposal’s lack of offset for initial margin would substantially increase clearing members’ total leverage exposure and, as a result, would significantly reduce clearing services to clients, increase concentration of client clearing services and negatively affect the portability of client accounts, especially in times of systemic stress.
