FCMs stunned by $1.75 billion client buffer at Credit Suisse


Banks in the over-the-counter derivatives clearing business have been shocked by data showing Credit Suisse is holding $1.75 billion of its own funds against $3.94 billion of client swaps collateral in its US futures commission merchant (FCM), Credit Suisse Securities USA. The 44% ratio makes the bank the most conservative among US FCMs, but rivals say it would put the profitability of most OTC clearing businesses under huge pressure.

"I think it surprised a lot of people - I know I was

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As uncertainty surrounding Brexit continues and the impacts of Covid-19-driven market volatility are analysed, it is essential for banks and their end-users to understand their clearing options, and how they can achieve greater capital and cross…

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