Fed’s Quarles says derivative clearing offset should be considered in new leverage ratio

16 November 2018 7:38am
Randal Quarles, the US Federal Reserve’s vice chairman for supervision, said that the central bank should consider including a derivative clearing offset in new capital requirements — a move that could encourage banks to clear more derivative contracts for customers.

“My personal view is that we ought to be open to changing our treatment of initial margin,” Quarles told the House Financial Services Committee this week.

“We have rules at the Fed … that address some of these concerns. We ought to use those.”