New capital requirements on derivatives trades from 2013

Tim Wallace
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INTERNATIONAL regulators proposed new capital requirements yesterday which will see banks hold capital against exposures to central counterparties (CCPs) on derivatives trades for the first time.

Trade exposures will receive a nominal risk-weight of two per cent from 1 January 2013, the Basel Committee said in interim rules published yesterday.

That will add to pressures on banks which are already pushing hard to raise capital levels to meet Basel III requirements.

But the Basel Committee insists these latest additions are modest compared with the other requirements banks face.