Leverage ratio begins to bite for FX derivatives

Capital-intensive rule for banks begins to bite FX world

dollar-squeeze-leverage

The price of trading foreign exchange derivatives via a prime broker (PB) could increase to as much as $85 per million for clients when banks start charging for the higher cost of servicing the supplementary leverage ratio (SLR) requirements, according to PBs.

The rules are part of the Basel III capital reforms that are sweeping their way into FX markets and changing the economics of the banks providing credit and balance-sheet services to clients. This is because the SLR assumes the business

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 customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets 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 indvidual account here: