Big banks’ potential exploitation of new derivative hedging rule to get eventual CFTC review

26 March 2019 9:26pm
The US Commodity Futures Trading Commission will study whether large banks take undue advantage of a rule adopted yesterday to increase hedging flexibility for small and midsize banks.

CFTC Chairman J. Christopher Giancarlo acknowledged colleagues’ concerns in providing for a staff study in three years — a move that still left Democratic commissioners dissatisfied and apprehensive.

“I take seriously,” the chairman said yesterday, “the concern about potential misuse of this provision in ways that are not intended.”