CFTC trade rules will create 'winner's curse'


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:

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

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: