Leverage ratio begins to bite for FX derivatives


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 ri

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking 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: