OTC Regulation may spur Futures flood

Despite the dominance of over-the-counter (OTC) trading in today’s FX market, the rapidly evolving regulatory landscape will lead managers to consider alternatives in today’s cost-conscious environment. Global regulations for margin calculations, capital requirements and mandatory clearing are increasing the appeal of futures as an execution vehicle.   Consultancy Oliver Wyman projects that FX futures will provide 40-70% savings on margin costs for institutions subject to Basel III. As firms see the cost-efficiencies in futures, instead of OTC products, they should Despite the dominance of over-the-counter (OTC) trading in today’s FX market, the rapidly evolving regulatory landscape will lead managers to consider alternatives in today’s cost-conscious environment. Global regulations for margin calculations, capital requirements and mandatory clearing are increasing the appeal of futures as an execution vehicle.   Consultancy Oliver Wyman projects that FX futures will provide 40-70% savings on margin costs for institutions subject to Basel III. As firms see the cost-efficiencies in futures, instead of OTC products, they should

Despite the dominance of over-the-counter (OTC) trading in today’s FX market, the rapidly evolving regulatory landscape will lead managers to consider alternatives in today’s cost-conscious environment. Global regulations for margin calculations, capital requirements and mandatory clearing are increasing the appeal of futures as an execution vehicle.   Consultancy Oliver Wyman projects that FX futures will provide 40-70% savings on margin costs for institutions subject to Basel III. As firms see the cost-efficiencies in futures, instead of OTC products, they should