NSFR to hike hedging costs for end-users, industry warns

Pricing could increase by 10-15%, House Agriculture Committee hears

Capitol Hill in Washington DC
Trade bodies blast NSFR proposal on Capitol Hill

Derivatives end-users face a 10–15% increase in hedging costs under new bank liquidity rules, industry groups claimed at a House Agriculture Committee hearing on Thursday (April 28).

On April 26, US federal regulators proposed a new rule to implement the net stable funding ratio (NSFR) – the second of Basel III's liquidity ratios – for bank holding companies with consolidated assets of $250 billion or more.

The proposal includes a requirement for dealers to hold so-called required stable funding

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