Dealers hope for replication of BoE move to two-way CSAs
Next year, the Bank of England (BoE) is expected to begin posting collateral to its counterparties when trading derivatives on behalf of the UK government, in a step change that many hope will be replicated by other central banks. With months to go until the central bank makes the switch, foreign exchange traders see the change as a particularly important one, given the potential funding costs that can fall on dealers if collateral is not posted.
The BoE announced in June it would start using
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