ESMA will keep eye on collateral use as crunch looms

The European Securities and Markets Authority says it will monitor collateral use as banks must hold more to improve the safety of derivatives markets. Banks have warned about a lack of quality holdings. "In view of the potential financial stability risks linked to relative collateral scarcity, the availability and use of collateral needs to be monitored," according to ESMA's first report on market trends, risks and vulnerabilities.

View Full Article in:

Reuters · Financial Times (tiered subscription model) · Wall Street Journal, The

Published in Briefs: