Capital requirements
As risk of US Basel delay grows, Europe is in a bind over CVA
European Commission may postpone FRTB, but it’s hard to separate surgically from rest of framework
Buy-siders bemoan ‘dark arts’ of corporate bond CSA discounting
Litany of pricing variables fuel wide differences in how dealers calculate discount rates for collateral agreements
US banks fight back in FX forwards
Price differentials have narrowed as banks learn to live with SA-CCR
Liquidity drops 80% on dealer balance sheet constraints – BIS
Study finds top-tier banks are more likely to pull back when leverage and funding costs spike
SA-CCR hit on US banks could hinder year-end dollar funding
Potential lighter presence of US banks in swaps market may affect buy side’s ability to roll hedges
SA-CCR hits Citi’s FX forwards pricing
Four clients say US bank has quoted “less competitive” spreads as a result of new capital regime
HSBC, StanChart face capital hit on cleared renminbi trades
Lack of UK recognition for Shanghai Clearing House could prompt banks to reduce exposures
Dealers face tough test on FX costs
Banks may pass on SA-CCR capital costs to FX clients
US banks step up FX optimisation push as SA-CCR looms
With swaps and forwards hit hard by new capital measure, dealers turn to vendors and bilateral restructuring
China netting law drives interest in CSAs
Steady growth in contracts with CSAs suggests confidence that clean netting is near
Optimisation firms prep for SA-CCR boom
FX expected to be big focus of industry’s new slimming drive – and vendors are jockeying for position