Futures Traders Prepare for New CFTC Regulations

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July 19 (Bloomberg) -- Bloomberg senior market correspondent Julie Hyman and Bloomberg News' Mary Childs discuss the impact on futures trading from new CFTC regulations as they put futures in focus in "On The Markets." They speak on Bloomberg Television's "In The Loop."

The commodity futures trading commission is proposing a new rule meant to protect futures customers' money.

Many say that this particular rule could drastically alter futures trading.

Joining me is mary childs, the bloomberg news reporter.

Terry duffy spoke before congress.

He is the ceo of the cme.

Why does he think these rules will not be positive?

It makes it harder for clients and brokers.

If you have to sit there and collect collateral and make up for your client posta fish and sees, it everything way too expensive -- client's inefficiencies, it it makes everything way too expensive.

For someone like the cme group, it can really add up and you end up with a market that is unworkable.

Does it seem like the cftc will blend or be flexible on this?

It is known for being pretty tough.

It seems like they do want to be open and share what things will work.

There's another big issue in the futures market.

Explain to me what the future reservation -- futurization of s waps is.

Over the past couple of years, it has been difficult trying to move it onto exchanges.

People are saying, do we need to have these complicated derivatives when we can just use futures?

Market participants are concerned if you have an investment or security that needs to be hedged with a swap, that can create invisible risk.

We will talk more about that complex issue.

We will be back.


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