Tag Archives: Capital Charges

3 reasons initial margin & leverage ratio are unrelated

3 Reasons Initial Margin is Unrelated to BASEL III’s Leverage Ratio

3 Reasons Initial Margin is Unrelated to BASEL III’s Leverage Ratio

APPLES AND ORANGES BASEL III plans to apply the leverage ratio to all collateral, including initial margin on cleared derivatives transactions (cleared at a clearinghouse).  Swap Market participants are looking at cost increases estimated at 60%.  A decision such as this will mean sell side will have to add on that capital charge, giving sell

SIFI Designation

SIFI Designation

The SIFI Designation for Non-Bank Financial Companies (NFC) A veritable pot of alphabet soup was put together by the FSOC to handle the task of designating non financial companies as SIFI’s. eight regulators: OCC, FDIC, CFPB, FHFA, FRB, NCUA, CFTC & SEC, one independent member with insurance “expertise” and five non-voting members. Three-Stage Evaluation The

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