Dealers fret over NSFR impact on equities

Basel Committee ignores calls to protect market in new funding rules

photo of the basel committee headquarters
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

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