Ten financial services entities, including a customer broker, exchanges, clearinghouses and principal trading firms, submitted a letter to the Basel Committee on Banking Supervision expressing their “grave concern” over the failure of the Committee to permit banks to offset their exposures to clearinghouses by the amount of margin posted by customers in computing their so-called “leverage ratio.” According to the letter, the failure “will result in vastly increased capital requirements for General Clearing Members, as well as their underlying clients, which will fundamentally threaten these business models to the detriment of the liquidity and stability of European and global markets.” According to the financial entities, the Committee’s current interpretation fails to differentiate adequately between margined and non-margined transactions.