Going vertical: Dealers mimic futures exchanges

Vertical rush

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If a clearing business is part of an institution that also makes markets in over-the-counter derivatives, there are lots of things it cannot do. The US Commodity Futures Trading Commission (CFTC) summed them up in its final rules on internal business conduct earlier this year. A futures commission merchant (FCM) – the US term for a clearing house member – must not allow any affiliated OTC trading desks to “directly or indirectly interfere with, or attempt to influence”

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