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.”
Big banks’ potential exploitation of new derivative hedging rule to get eventual CFTC review
26 March 2019 9:26pm