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MFA and Industry Coalition Submit Comments on Basel III Leverage Ratio

On November 3, MFA joined an industry-wide coalition letter that FIA submitted to the Basel Committee on Banking Supervision (BCBS) to express concerns with the current construction of the Basel III leverage ratio and its impact on cleared derivatives exposures. The letter urged BCBS to carefully consider the unintended consequences of failing to revise the leverage ratio to accurately reflect the exposure reducing effect of segregated client initial margin in the cleared derivatives markets.