Wall Street Trading Costs to Surge as New Rules Hit Derivatives
- Requirements mean Wall Street has to hold more collateral
- A Citi model shows prime-broker fees getting 31 times pricier
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Wall Street’s heavyweights are prepping their clients for bad news: Some trades are about to get a lot more expensive.
Firms including Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are warning customers to get ready for new rules that require more collateral for certain trades. The regulations take effect for some clients in September, but the snare gets even tighter in 2020, when more than 1,000 hedge funds, asset managers and insurers will get caught for the first time.