US capital proposals would entail a whopping 96% rise in derivatives counterparty threat costs. However whereas this potential doubling has struck concern into some within the trade, others consider it’s no large deal.
Sources argue banks might slash the capital hit by tweaking hedges to align with the brand new regulatory view of exposures. There are calls, nonetheless, for higher alignment than is probably at the moment envisaged.
“It’s potential to fairly align the capital aid with hedging the market threat,” says
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