Financial Times FT.com

Costs set to rise amid shake-up in derivatives trading

By Michael Mackenzie and Aline van Duyn in New York

Published: June 18 2009 18:19 | Last updated: June 18 2009 20:29

The message is clear: it is going to cost more to trade derivatives.

The plans for regulatory reform unveiled by the Obama administration this week are seeking one of two things. Either users of derivatives have to put aside capital themselves if the contracts are traded privately, or margins have to be paid to clearing houses to cover potential losses.

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