Aug. 5 (Bloomberg) -- U.S. regulators delayed GFI Group Inc.’s request to create a derivatives exchange, calling the proposal “materially incomplete.”
The U.S. Commodity Futures Trading Commission said New York-based GFI, which arranges trades between banks, must revise its application for GFI Futures Exchange LLC to be considered for approval, according to a July 26 letter posted on the regulator’s website.
“Based on our current conversations with the CFTC, we are confident that our exchange will be registered at or around the beginning of October, which is consistent with our desired launch date,” Patricia Gutierrez, a GFI Group spokeswoman, said today in an e-mailed statement.
Firms in the $633 trillion over-the-counter derivatives market are adjusting to regulations under the 2010 Dodd-Frank Act. GFI Group has also asked the CFTC for approval to build a new type of venue created by the law, known as a swap-execution facility. Bloomberg LP, the parent of Bloomberg News, last week became the first organization to win CFTC approval for an SEF, and other firms that have applied to create one include MarketAxess Holdings Inc.
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