Who picks up the tab for regulation costs?

Participants in the foreign exchange market are bracing themselves for a tug-of-war between the buy and sell side over how the costs of regulatory change should be divided up. With deadlines for compliance with the US Dodd-Frank Act and the European Market Infrastructure Regulation creeping closer, the advent of mandatory clearing and reporting will clearly increase transactional costs, but there is still little clarity on who will pick up the tab.

Up until now, the precise size of fees and how