Acadia sees 150% rise in funding costs on margin requirements

Acadia has estimated for parts of its client base an increase of over 150% in the cost of margin, made up of a
55% increase in exposure and a 90% increase in funding costs.

In an article, Stuart Smith, co-head of Business Development at Acadia, details the increasing cost of margin, provides insight on how the SIMM recalibration impacted margin costs for the industry and takes a closer look at the data that shows an increase in funding cost of over 150%. He also discusses the likely future effects of this trend and shares important tips for firms to reduce their exposure and manage risk more effectively.

Read the full article

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