CFTC trade rules will create 'winner's curse'

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Rules proposed by the US Commodity Futures Commission (CFTC) on large trades could create a 'winner’s curse', harming liquidity in the market for interest rate derivatives, according to analysts at Barclays Capital.

In a report dated February 10, the bank's interest rate analysts say rules on so-called block trades would create extra risks for dealers, causing spreads on these trades to widen.

Dealers and buy-side market participants have argued the rules will damage liquidity in the market – an

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]