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New margin rules, coupled with the efforts of exchanges to lure volume, could drive more over-the-counter (OTC) options trading onto exchanges, suggests a new report from research firm Greenwich Associates.

The implementation of new margin rules, which are being phased in over several years, is increasing trading costs for OTC options, Greenwich reported. The firm said this rise in trading costs could ultimately motivate a shift to exchange-based trading.

“Despite the fact that many if not most market participants eventually will be subject to the rules, only one-in-five buy-siders report that they have begun to examine the impact that [the new rules] will have on their trading costs,” David Stryker, principal with Greenwich Associates markets team, said in a statement.

But, Greenwich said it believes a combination of the new rules and investments by exchanges to attract trading will “cause the buy-side to take a more aggressive approach in investigating listed options as a viable complement to their OTC activity.”

The firm said that its analysis finds that a move to listed options could reduce trading costs by upward of 70%.

“Over the next two years, the interest in listed options will only grow,” says Stryker. “We have seen exchange-traded products gain significant traction in other asset classes and expect FX options will be next in that evolution.”