FCMs face buyside pressure to reduce clearing fees

By Beth Shah
21 Oct 2014

Futures commission merchants (FCMs) are expected to come under increasing pressure from the buyside to reduce the clearing fees that they charge as trading volumes increase. This comes following an increase in rates charged by some FCMs in a bid to cover the rising costs of business associated with the implementation of various regulatory changes.

In a report, TABB Group wrote that buyside institutions generally are not putting pressure on FCMs to lower execution rates, however there is rising pressure from asset managers to lower clearing rates. Pressure to reduce commission levels is expected to rise as volumes do.

“This continues to be ...

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