Wall Street’s heavyweights are prepping their clients for bad news: Some trades are about to get a lot more expensive.
Firms including Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are warning customers to get ready for new rules that require more collateral for certain trades. The regulations take effect for some clients in September, but the snare gets even tighter in 2020, when more than 1,000 hedge funds, asset managers and insurers will get caught for the first time.
The so-called uncleared-margin rules require banks and their clients to “exchange margin” for derivatives traded directly between...
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