The International Swaps and Derivatives Association (ISDA) is asking US regulators to again except US Treasuries from the Supplementary Leverage Ratio (SLR). This move was initially implemented as an emergency liquidity measure in April 2020 (then officially in May 2020) then rolled off in March 2021. There has been a good bit of discussion since then about whether the exemption should be made permanent. If it is, would this set an unhealthy precedent going forward?
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