Key facts
- Buy-side demand for collateral flexibility is increasing.
- Sell-side efforts to simplify terms in bilateral trades have faced buy-side resistance.
A recent benchmarking exercise by Risk.net indicates a growing trend of buy-side demand for greater flexibility in collateral arrangements within derivatives trading. While the sell side has advocated for simpler terms in bilateral trades, this push has not been widely accepted by the buy side. The findings suggest a continued negotiation over collateral terms, with the buy side increasingly seeking more adaptable structures.
