Costs for end-users of over-the-counter derivatives will rise regardless of whether collateral is posted as a result of new regulations adopted by the Basel Committee on Banking Supervision, according to Finadium. The consulting firm, in a market commentary, takes issue with the argument that posting collateral would be detrimental to the financial health of their members, speculating that posting non-cash collateral on a central counterparty “would be less financially difficult than putting up cash either for a bilateral or CCP trade.”
