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Regulation

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  • A proposal by the U.S. Commodity Futures Trading Commission that listed derivatives must have at least 85% of their markets traded through a central limit order books and a 15% by block trades may boost the over-the-counter derivatives market, according to futures industry leaders. Failure to meet those thresholds would lead to delisting.
  • Jurisdictional regulatory differences as well as product complexity will present U.S. clearinghouses with significant operational challenges in providing capital efficient clearing services to clients trading in the over-the-counter equity derivatives market especially, according to Amy Lawson, vice president at OCC, formerly known as the Options Clearing Corporation, on a panel at the Futures Industry Association's Options Expo 2011 in Chicago yesterday.
  • A tax on high-frequency trading in the U.S. is a bad idea, according to Terence Duffy, executive chairman of the CME Group on a panel at the Futures Industry Association’s Options Expo 2011 this morning.
  • Some countries will miss the Dec. 31, 2012 deadline for clearing and reporting to trade repositories all standardized over-the-counter derivatives set by G20 leaders in 2009, according to the Financial Stability Board.
  • The increasing prevalence of maker-taker pricing schemes in options markets, both exchange-traded and over-the-counter, will hurt exchanges and the market overall, said Jeffrey Sprecher, ceo of the InterContinental Exchange, on a panel at the Futures Industry Association Options Expo 2011 in Chicago today.
  • The debate over how to most efficiently segregate client collateral in the post-Dodd-Frank swaps market should be set to one side while the market works out other growing pains, said Craig Donohue, ceo of CME Group on a panel at the Futures Industry Association’s Options Expo in Chicago today.