The Basel Committee on Banking Supervision has published an updated version of its frequently asked questions (FAQs) on the Basel III leverage ratio framework. FAQs that have been added since the publication of the previous version of the document in October 2014 are shaded in yellow.
The questions and answers are grouped under the following areas:
- criteria for the recognition of cash variation margin associated with derivative exposures;
- centrally cleared client derivative exposures;
- exposures and netting of securities financing transactions (SFTs);
- the treatment of netting SFTs and derivatives under a cross-product netting agreement;
- the exposure measure under the additional treatment for credit derivatives; and
- the treatment of long settlement transactions and failed trades.
View FAQs on the Basel III leverage ratio framework, 7 July 2015