Swaps end-users fear clearing fee and margin hikes

Risk Derivatives Clearing: buy-side firms expect clearing costs to rise

End-users expect clearing fees to rise

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, hea

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: