Softer rules on clearing margin may not cut end-users’ costs
The buy side says inconsistency in how brokers pass on leverage ratio costs, increased market concentration and other factors would keep their clearing costs high
Removing clients' margin from the leverage ratio may not necessarily reduce costs for clearing banks' customers, buy-side firms have said, weighing into a long-running spat between banks and regulators over the ratio's impact on the availability of central clearing.
Supervisors are still reviewing the leverage ratio rules, but in their current form they require clearers to count received client margin towards their own exposure – even if the margin is segregated from the bank's own assets and is
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