Some call it off-boarding. Others speak bluntly of ‘firing' unprofitable clients. The more diplomatic refer to "the new economics of clearing".
It all means the same thing: faced with higher regulatory capital requirements, futures commission merchants (FCMs) are hiking fees and giving clients the choice of paying up or moving on.
"Raising fees is a soft way to off-board clients," says the head of clearing at a bank in New York. "If an FCM feels a client relationship is no longer profitable, the