Banks Face Tougher Swaps Margin Rules in Global Regulator Plan

Banks may have to put more collateral behind trades of over-the-counter derivatives as global regulators seek to choke off opportunities for excessive risk taking.

The Basel Committee on Banking Supervision and International Organization of Securities Commissions said that the plans, which target swaps traded away from clearinghouses, would ensure lenders have safeguards in place when a trading partner defaults.

The rules would kick in after a 50 million-euro threshold ($66 million,) the Basel group said on its website.

To contact the reporter on this story: Jim Brunsden in Brussels at jbrunsden@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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