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SIFMA asks CFTC to leave asset managers out of its position limits rule

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The Securities Industry and Financial Markets Association is urging the Commodity Futures Trading Commission urging the futures and swaps regulator to exclude asset managers from a rule that would curb speculation by Wall Street traders. Asset managers who own a stake in companies that hold derivatives positions should not be forced to comply with the position limits rule, SIFMA said. The group argued that asset managers are "passive investors" who have no control over the trading positions of their portfolio companies. "Asset managers would need to monitor the require ownership held by the funds and accounts that they manage for this purpose, and would need to develop some system of monitoring commodity derivatives positions held by these operating companies," said SIFMA in the letter dated August 1. Even then, SIFMA said portfolio companies may not report their trading positions to asset managers on time. The position limits rule is part of the 2010 Dodd-Frank

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