Sector Regulation Sector Regulation

Banks that trade OTC derivatives tend to pick nonbank counterparties with bank connections, creating 'risk propagation,' US study says

By Neil Roland
  • 22 Sep 2022 22:13
  • 22 Sep 2022 22:13
Large banks in the over-the-counter derivatives market are more likely to choose nonbank counterparties with multiple bank connections, potentially creating “risk propagation” among bank networks in this opaque market, a federal study released today said.

Banks also tend not to hedge these exposures, partly because of a lack of availability of applicable credit-default

To view the latest version of this document and thousands of others like it, sign-in to MLex or register for a free trial.

Discover MLex

Stay on top of global regulatory developments


Latest News