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U.S. CFTC Clearing Rules Eyed for Some Currency Derivatives 

October 9, 2014
Silla Brush, Bloomberg

Foreign-exchange traders, already subject to a global probe over alleged manipulation, may face U.S. restrictions on derivatives contracts for some currencies.

Commodity Futures Trading Commission members and staff are weighing whether to require that contracts for non-deliverable forwards be guaranteed at clearinghouses that accept collateral from buyers and sellers. The regulation would apply the clearing rule to contracts for a dozen currencies, including China’s yuan, South Korea’s won and Brazil’s real.

The CFTC’s global markets advisory committee, led by Commissioner Mark P. Wetjen, plans to discuss the matter at an Oct. 9 meeting that is scheduled to include agency staff and David Bailey, director of financial markets infrastructure supervision at the Bank of England. A new rule would expand on CFTC mandates that require clearing for interest-rate and credit-default swaps.

Read more: Bloomberg

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