CFTC calls for revised leverage ratio

Author: Edward Price | Published: 13 Oct 2015

Commodity Futures Trading Commission (CFTC) chairman Timothy Massad has again called on global regulators to soften the leverage ratio, amid continued calls for a more widespread re-appraisal of rulemaking.

Speaking at a conference on September 29, Massad added to the debate around leverage ratios’ effect on banks’ clearinghouses that could potentially drive them out of an already threatened sector.

Massad’s comments come at a time when both industry bodies and, more surprisingly, regulators are calling for post-crisis reforms and their potential for intended consequences, to be re-assessed.

"As we come to the end of the rule writing process, it’s time to look at the interaction of various rules," said Carter McDowell, managing director and associate general counsel at Securities Industry and Financial Markets Association (Sifma).

The US securities industry trade group believes the core issue is ensuring that new rules work well, both individually and together. "We should...