Fails could jump as category two clearing starts in US, FCMs warn

Hundreds more firms will be required to start clearing in the US today, and FCMs are warning there could be an increase in rejected trades as a result

rejected

The number of trades rejected for clearing could jump this week, futures commission merchants (FCMs) have warned, as the second phase of US swap clearing rules takes effect, drawing in hundreds of new firms. FCMs are required to accept or reject trades within 60 seconds of receiving them. Their performance following the first clearing deadline, on March 11, is already being scrutinised by the Commodity Futures Trading Commission (CFTC).

Clients are also watching closely. If a trade is rejected –

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