The Basel Committee on Banking Supervision (has published frequently asked questions (FAQs) on the Basel III leverage ratio.
The questions and answers in the FAQs are grouped into the following categories:
- criteria for the recognition of cash variation margin associated with derivative exposures (section 1);
- centrally cleared client derivative exposures (section 2);
- netting of securities financing transactions (SFTs) (section 3);
- the treatment of netting SFTs and derivatives under a cross-product netting agreement (section 4); and
- the exposure measure under the additional treatment for credit derivatives (section 5).
View Frequently asked questions on the Basel III leverage ratio framework, 7 October 2014