No need to panic about collateral supply, says Bank of England
The possibility that mandatory central clearing of over-the-counter derivatives, coupled with margin requirements for uncleared trades, could create a drain on the supply of eligible collateral has been overestimated and should not be a cause for panic, a senior official at the Bank of England has warned.
"There are clearly a number of real regulatory and market factors that are tending towards an increased demand for collateral and those do include the central clearing obligation and the
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