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May 16, 2013

Regulators Back Down on New Derivatives Rule 
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Federal regulators have bowed to a Wall Street pushback against new
rules to oversee the trading of derivatives. The Commodity Futures
Trading Commission had been planning on imposing a rule requiring asset
managers to seek quotes from five different banks when dealing in
derivatives contracts. Supporters say the rule would have increased
competition and lessened the control of a handful of firms over 90
percent of the market. But after objections from major banks, the CFTC
says it will lower the requirement for soliciting derivatives from five
banks to two.

 

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