SA-CCR adoption may spur wider FX swaps clearing

With up to 90% lower exposures on offer, dealers say capital benefits could outweigh margin costs

Clearing deliverable foreign exchange swaps and forwards could slash leverage ratio exposures by up to 90% under new counterparty credit risk rules compared with bilateral trades, giving some dealers a capital incentive to clear the positions that would outweigh the cost of posting margin for the first time.

“I think this could be a game-changer for the future of clearing and we do believe there is a benefit for the leverage ratio in using clearing houses,” says a collateral head at one