On June 18, U.S. major banking regulators plan to reduce key capital buffer requirements for large banks by up to 1.5 percentage points. Previously, there were concerns in the industry that existing rules were constraining banks' trading activities in the $29 trillion Treasury market. According to informed sources, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are focusing on the so-called Enhanced Supplemental Leverage Ratio (eSLR), which applies to U.S. systemically important banks such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The new proposal aims to lower the capital requirement for bank holding companies under the eSLR from the current 5% to a range of 3.5%-4.5%. The capital requirements for bank subsidiaries are also expected to be simultaneously reduced from 6% to the same range. This adjustment is similar to the 'customized' revision approach to the eSLR calculation for systemically important banks during the Trump administration in 2018, but specific terms may still be modified. #Market