Dealers fret over NSFR impact on equities

Basel Committee ignores calls to protect market in new funding rules

BIS headquarters, home of the Basel Committee

Banks fear that a number of standard equity markets practices – ranging from futures hedging to short selling and IPO underwriting – will be hurt by the final version of new international liquidity rules published last week by the Basel Committee on Banking Supervision. That tees up a scrap in Europe, according to regulatory specialists, where politicians will have to approve a local version of the regime and may ride to the market's defence.

"There are outstanding issues with the proposal that