Regulators sound warning on collateral squeeze

Reading the signs: report warns of high-quality collateral shortages

Regulators have acknowledged there may be temporary, localised shortages of the high-quality collateral needed to satisfy new margin requirements for over-the-counter derivatives.

In a report published on June 2, a joint forum of global banking, securities and insurance regulators urged their peers to "be aware of the growing need for high-quality liquid collateral to meet margin requirements for OTC derivatives sectors", and to take "appropriate steps to promote the monitoring and evaluation of

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