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EU to Delay Swaps Capital Rule Amid U.S. Clearing Talks 

April 27, 2015

Jim Brunsden, BloombergBusiness

The European Union is set to postpone the start of stricter bank capital rules for some swaps trades as it negotiates with the U.S. to resolve a regulatory clash.

A committee of officials from EU finance ministries and regulators on Friday backed a delay in the start date of the rules beyond the current deadline of mid-June, a European Commission spokeswoman said. The standards set out how much capital banks must have behind trades that are processed by clearinghouses in countries whose regulations are deemed sub-standard compared with those in the EU.

“Without an extension the capital requirements for exposures” to such clearinghouses “would increase significantly,” the spokeswoman said by e-mail. “This vote also provides our banks with legal certainty.”

Read more: BloombergBusiness

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