CFTC 'should demand' clearing house mins
Friday 19 November 2010 - by Andrew Hickley
The Managed Funds Association has appealed to the Commodity Futures Trading Commission to address issues of transparency surrounding the regulation of derivatives clearing houses.
Among other recommendations, the MFA calls for the removal of a provision that states employees or officers of a clearing house cannot be members of its own risk management committee.
The MFA says that the interests of these groups are aligned, with employees motivated to ensure that clearing organisations maintain their risk management boundaries to prevent losses to both the clearing house and its members.
It also says that allowing competition between designated contract markets and swap execution facilities is "critical" for developing a sound market.
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