Dealers see danger in CFTC's $50m clearing capital limit

CFTC says 38 FCMs would be able to act as OTC clearing members under $50 million capital limit - but dealers fear it will weaken CCPs, and call for tough membership rules to redress the balance


Dealers are concerned by new rules limiting to $50 million the amount of capital  clearing houses can require their members to have – a proposal first aired by the Commodity Futures Trading Commission (CFTC) in December, and finalised in a 3-2 vote on October 18 despite fierce criticism from dealers and some central counterparties (CCPs), including London-based LCH.Clearnet.

The CFTC says the move will allow more clearing members to sign up to CCPs, but opponents of the limit – which is just 1%

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