Basel leverage ratio would double up collateralised OTC positions

- By Matt Cameron, Duncan Wood and Lukas Becker
- 27 Jun 2013

Collateralised derivatives positions will be doubled in size under the revised leverage ratio published yesterday by the Basel Committee on Banking Supervision – a prospect that is already alarming traders who fear it could force a retreat from some business lines. The doubling effect occurs because banks are not allowed to set collateral against the size of their derivatives assets and the

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