FCMs raise concerns about CFTC's 60-second rule

02/19/2013 | Risk.net (subscription required)

A Commodity Futures Trading Commission rule to require futures commission merchants to decide on clearing within 60 seconds may cause them to incorrectly reject some trades, FCMs say. "If the client is close to a limit and sends a risk-increasing trade through first, and we don't know there's a subsequent trade that's risk reducing ... we will reject that first leg of the trade," said Piers Murray of Deutsche Bank.

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