Tax questions cloud prospects for CME swap future and Mac swaps

Tom Osborn
@TomOsborn
29 Jul 2013

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The US taxman is holding back growth in CME Group’s new swap futures contract, according to some market participants. This is a consequence of the product’s design, in which users can end up taking delivery of an over-the-counter swap at an off-market rate when the contract reaches expiry. The fear is that US tax rules may treat this as a loan, which prompted some users to roll their positions at the product’s first two maturity dates in March and June, rather than allowing them to expire. The

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