Trading

Get ready for a derivatives trading meltdown next autumn

New uncleared margin rules will hit hundreds of pension funds and asset managers when they take effect in September

Get ready for a derivatives trading meltdown next autumn
Photo: Klaus Meinhardt / Getty Images

The cost of derivatives trading in Europe is set for a financially crippling 10-fold increase under new regulation.

These so-called uncleared margin rules, which have already hit a number of larger companies based on the size of their portfolios, will pull in other pension funds and asset managers at an exponential rate each September until 2020.

WSJ Logo