Lawyers blast Basel on funding of STM swaps

'Daft' guidance would see settled-to-market derivatives caught by NSFR and LCR liquidity ratios

The Bank for International Settlements, Basel
Photo: Ulrich Roth

Lawyers are criticising the inconsistency of a move by the Basel Committee that would see centrally cleared settled-to-market (STM) derivatives caught by Basel liquidity guidelines and counted towards exposures requiring stable funding under net stable funding ratio (NSFR) rules.

“I do not know where this came from or what the thinking is behind it, but it seems to be out of line with current thinking on this issue, in Europe at least. Consequently, I rather doubt that it will be adopted as a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: