From regulated trading to clearing and reporting, post-crisis reform of the swaps world has often been seen as an attempt by markets regulators to make it work more like its listed cousin. Now, in extending swaps-style capital treatment to listed products, prudential regulators seem to be set on returning the favour, by making futures look and feel more like swaps – that is, worn out, overweight and under pressure.
The culprit is the leverage ratio, which requires banks to hold capital equal to
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