Dealers fret over NSFR impact on equities
Dealers fear underwriting, short selling and futures hedging will be more difficult after regulators ignored calls to soften the net stable funding ratio. Banks are also worried about a funding charge for derivatives liabilities
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
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