The Securities Industry and Financial Markets Association (SIFMA) released the following statement from Kenneth Bentsen, SIFMA president and CEO, on the final rule reforming supplemental leverage ratio (SLR) rules:
“SIFMA strongly supports restoring the eSLR to its proper role as a backstop to risk-based capital requirements and mitigating limitations on the ability of banking organizations to intermediate in US Treasury markets. This is particularly pressing given the impending industry move to mandatory clearing for U.S. Treasuries. We commend the Agencies for the focus on the issue.
“We encourage the Agencies to consider revisions to Tier 1 leverage ratio requirements in future rulemaking as part of a broader review of the U.S. regulatory capital and leverage framework and the negative effects of the Tier 1 leverage ratio on U.S. Treasury market intermediation.”