Despite OTC Costs Increasing, Many Institutional Traders Haven’t Examined Listed Derivatives

Clearing institutional currency (FX) trades can cost up to 70% less using listed derivatives as opposed to over the counter (OTC) options when new margin rules take effect, a recent Greenwich Associates study points out. But the report notes a “surprising” development in that only one in five institutional traders have begun to examine the cost impact of OTC options as Uncleared Margin Rules (UMR) bear down on prime brokers, impacting institutions with exposure of $8 billion or more.

exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles

Subscribe to our mailing list

* indicates required

Opt out of occasional 3rd party offers


0