SFT netting trails swaps at big EU banks
Netting wiped €1.5 trillion off nine G-Sibs' swaps exposures
Big European Union dealers use netting to reduce counterparty credit risk (CCR) for their derivatives exposures to a greater extent than for securities financing transactions (SFTs).
Netting benefits were used to squash credit exposures to derivatives counterparties to €492 billion ($554 billion) from an original carrying amount of €2 trillion at nine EU global systemically important banks (G-Sibs) in 2018. That's a reduction of 77%.
On the flip side, netting only reduced SFT CCR exposures
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