Processing costs slashed

A survey of 10 major banks by London-based market intelligence firm Z/Yen found the adoption of these utilities led to a reduction in the costs associated with rates, credit and equity derivatives in 2006.

The cost of processing an interest rate derivatives trade fell from $198 in 2005, to $181 last year. Similarly, the cost of processing credit derivatives and equity derivatives trades fell from $196 and $275 in 2005, to $141 and $192 last year, respectively. In the same period, trade volumes