Prop-Trading Firms Said to Face Dodd-Frank Swap Dealer Rules
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The U.S. Commodity Futures Trading Commission may require companies that trade swaps on their own behalf to register with the agency as dealers as the regulator considers ways of limiting their capital requirements, according to three people briefed on the regulation.
The dealer registration requirement would allow the CFTC, the main U.S. derivatives regulator, to have direct oversight of firms that use high-frequency and algorithmic strategies to trade their own money, according to the people, who spoke on condition of anonymity because the rule isn’t public.