CFDs gain reprieve from CVA threat

A hammer about to smash a piggy bank

Earlier this year, a number of retail FX brokers were lining up to prophesy doom for the contracts-for-difference (CFD) market. Basel III had placed the instrument square in the sights of the credit valuation adjustment (CVA) charge, a new rule requiring an extra wedge of capital to be added to derivatives providers’ balance sheets. Retail FX brokers would be forced to scale down provision of CFDs, or forced out of the market entirely due to this higher capital cost, they claimed.

Just a few

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: