FCMs stunned by $1.75 billion client buffer at Credit Suisse
Swiss bank is tying up too much capital in immature business, rivals claim, after new NFA data shows it to be an outlier
Banks in the over-the-counter derivatives clearing business have been shocked by data showing Credit Suisse is holding $1.75 billion of its own funds against $3.94 billion of client swaps collateral in its US futures commission merchant (FCM), Credit Suisse Securities USA. The 44% ratio makes the bank the most conservative among US FCMs, but rivals say it would put the profitability of most OTC clearing businesses under huge pressure.
"I think it surprised a lot of people - I know I was
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