The largest derivatives dealers may need additional capital to handle the expected rise in clearing activity after new regulation take effect, according to the Bank for International Settlements. In its quarterly review, the BIS stated that the banks—which include Bank of America Merrill Lynch, Barclays Capital, BNP Paribas and 11 others—could suffer a capital shortfall in volatile markets when daily margins rise, thus triggering a demand that several billions of dollars within a day. Click here to read the review from BIS.
