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Time running out to clean the collateral pipes

New bank capital and derivatives clearing rules are set to put unprecedented demand on collateral – the trick will be getting it moving

Time running out to clean the collateral pipes

Next year may be when the chickens of Pittsburgh come home to roost.

When the 2009 G20 summit in the city produced the outlines of a post-crisis settlement - shoring up bank balance sheets and reducing the risk of over-the-counter derivatives trades by pushing most of them through clearing houses - many feared there would not be enough collateral to get the job done.

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