A rise in the cost of repo and foreign exchange derivatives has become a year-end tradition for several years now, as banks try to shed balance sheet exposures to keep a lid on future capital requirements.

Fears were heightened about what was to come on December 30 and 31 following a bigger-than-normal jump in secured funding costs and FX derivatives pricing at the end of September. 

However, despite some unique pressures, market participants say concerns those markets could freeze up on the