Ice Clear Europe’s collateral is spreading a ‘nightmare’, say banks

For years, banks and their customers not only had to pay millions of dollars in margin on cleared derivatives, but also had to pay the clearing house for the privilege of holding that margin because of negative interest rates. At least rising interest rates since 2022 promise that clearing houses would now pay members interest on the cash collateral instead. But a clearing house in Europe is being deprived of even that comfort.

Banks are growing

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