Asset managers face surging costs under new derivatives rules

“The new rules will undoubtedly create new challenges and increase costs for asset managers,” said Dimitri Tsopanakos, head of Deloitte’s investment management and wealth risk advisory practice.

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.