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Wall Street to take hit from new swap platforms -study 

June 25, 2014
Reuters

Wall Street banks are set to take a hit from new rules forcing swaps trading onto regulated platforms, a change expected to lower prices and cause further revenue drops, a study showed on Wednesday.

The new rules, which took effect in February and were required by the 2010 Dodd-Frank financial reform law, could cause revenue in the derivatives business to fall by up to 35 percent, the study by consulting firm McKinsey said.

If banks took no further action, this could wipe out their entire profit in that business, the study said.

"It's a clear call to action ... to really tackle the cost-base," said Roger Rudisuli, a McKinsey partner, and one of the authors of the report.

Read More: Reuters

 
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