Regulation

Banks win six-month reprieve on clearing capital rules

Impasse between European and US authorities over equivalence sees June 15 deadline pushed back to December

Banks win six-month reprieve on clearing capital rules

The European Commission has delayed by six months the deadline for banks to put in place capital to protect themselves against a clearing house default, giving European and US authorities extra time to hammer out an agreement on equivalence.

Originally set to take effect from June 15, the rules would have required banks to analyse their potential exposure to clearing houses and set enough capital aside to cover potential losses. The transitional period will now be extended to December 15, the Commission announced on Thursday.

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