Views Article

This article looks at the need for corporations, insurance companies, hedge funds and other users of OTC derivatives to post collateral for their trades under Dodd-Frank. The article discusses the reality of Basel III’s impact on bank balance sheets and that in the end, costs will rise for endclients regardless of whether collateral is posted or not. The article concludes with recommendations for end-clients to assess their exposure now and to identify alternative financing options such as collateral conversion trades.


Study prepared by Josh Galper for WFE Working Committee on how securities lending is impacting the business of stock exchanges and presented at the Shenzhen, October 2007 Working Committee Meeting.