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Reg rageMay 18 2016

Leverage ratio piles on the derivatives pain

A 'small' modification to the standardised method for measuring over-the-counter derivatives exposures threatens yet another layer of costs for banks.
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What's happening?

The torrent of regulation designed to make it safer to trade and hold derivatives shows no sign of stopping, even as some over-the-counter (OTC) products apparently face extinction for being too expensive to use due to higher capital requirements.   

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