European companies have warned that proposed reforms of the derivatives markets requiring contracts to be routed through clearing houses could impose a huge drain on corporate cash. In a comment paper criticising European Commission proposals for the OTC derivatives market, the UK-based Association of Corporate Treasurers wrote that current plans could require companies to hold billions in extra cash against positions or post as margin.

This entry was posted by Gwen Robinson on Friday, August 28th, 2009 at 3:44 and is filed under Capital markets. Edit this entry.