Regulators on both sides of the Atlantic have agreed to study whether greater use of bilateral collateralisation could be expanded in over-the-counter derivatives markets as an alternative to sweeping imposition of greater capital charges.

The move will be greeted with relief by financial and corporate users of OTC derivatives. They have argued that reforms of the OTC derivatives markets risk going too far in mandating that banks and other intermediaries set aside extra cash on their balance sheets against the perceived risks of using many OTC derivatives.