EU banks forced to up collateral for ETDs in Q4 2020

Over-collateralisation of European Union banks’ exchange-traded derivatives (ETD) liabilities at end-2020 was the highest since the previous March, European Banking Authority (EBA) data shows – a sign of how margin requirements can ramp up despite ostensibly benign market conditions.

As of the end of last year, security posted by lenders in ETD transactions was 23.3% in excess of their liability, compared with 12% at end-September and 17.4% at end-June.

  !function(e,i,n,s){var t=

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 individual account here