Negative Eonia rate causes CSA headaches

Banks look for clarity on collateral interest payments

Eonia rates are now negative

Correction, 17 Sep 2014: The original version of this story stated incorrectly that Isda's negative interest protocol does not distinguish between one- and two-way CSAs. The article has been amended.

Derivatives market participants have been scrambling to clarify and modify the terms of their collateralised trades after Eonia - the rate commonly paid on euro-denominated collateral - fell into negative territory late last month.

Eonia dropped to -0.004% on August 28 and then to -0.007% on Septemb

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