It’s About Time! Wall Street Trading Costs to Surge as New Rules Hit Derivatives

Wall Street’s heavyweights are prepping their clients for bad news: Some trades are about to get a lot more expensive…….The so-called uncleared-margin rules require banks and their clients to “exchange margin” for derivatives traded directly between participants instead of being cleared through an exchange. Citigroup is sounding one of the loudest alarms about potential fallout, saying in a recent report that, for one model it tested, fees at its foreign-exchange prime brokerage got 31 times more expensive if it passed along higher costs.