Basel Committee Publishes Final Standard On Capital Requirements For Exposures To Ccps

On 10 April 2014, the Basel Committee on Banking Standards published the final standards for capital requirements for bank exposures to central counterparties. The interim framework was published in July 2012. The final standard will apply from 1 January 2017 with the interim provisions continuing to apply in the meantime. The final standard includes the following revisions to the interim standard:

• A new approach for determining the capital requirements for bank exposures to qualifying CCPs ("QCCPs");
• A cap on the capital charges applied to bank exposures to QCCPs; and
• A specification of the treatment for "multi-level" client structures (i.e. a structure in which banks centrally clear as indirect clients).