Will Basel III rules mean that seclending and repo get swallowed up by OTC derivatives? (Premium Content)
While the title of this article may sounds provocative, its actually a serious question. Recent Basel III rules on the Comprehensive Approach for securities lending credit risk analysis vs. the standardized approach for measuring counterparty credit risk (better known as SA-CCR) could realistically shift business away from securities finance transactions (SFTs) and towards OTC derivatives. Here’s why.