ASSET managers are about to see trading costs surge under new rules meant to reduce risk in the US$15.8 trillion (RM65.64 trillion) derivatives market.
Hedge funds, money managers and insurers with more than €50bil (US$59bil or RM246.85bil) of uncleared derivatives will have to post more collateral under the penultimate phase of post-crisis regulations that took effect this week.
Group-of-20 leaders decided after the financial crisis to push trading of over-the-counter derivatives through clearinghouses where possible to reduce systemic risk in case of default.
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