Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

RBS’ biggest trading customers face negative rates

RBS’ biggest trading customers face negative rates

by Tim Wallace

Royal Bank of Scotland will impose negative interest rates on some of its biggest customers from Monday, as central banks’ sub-zero policies start to bite.

The 70 largest companies which are heavily involved in financial trading, including other banks and pension funds, will face the charge when trading options and futures.

Traders have to post collateral with clearing houses – funds which cover the cost of transactions if the trader is unable to pay the bills.

If the institutions put cash on deposit as collateral, they will now face a negative charge.

RBS argues that this is a fee imposed on the bank by the clearing houses, and it is only now deciding to pass it on to customers.

It applies in euros, sterling and other currencies.

To continue reading please click link http://www.telegraph.co.uk/business/2016/08/19/rbs-biggest-customers-face-negative-rates/