Swaps end-users fear clearing fee and margin hikes
Risk Derivatives Clearing: buy-side panel expects fees to rise as FCMs wrestle with regulatory costs
Derivatives end-users are bracing for higher clearing fees and margin requirements, while some buy-side firms fear more futures commission merchants (FCMs) will exit the business as the new economics of central clearing begin to bite.
"The profitability of the OTC clearing business has not met clearing broker expectations. Clearly we would be concerned about price increases, about whether FCMs are staying in the business, and the competitiveness of the services offered," said Josh Braverman
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