WASHINGTON (CN) – The Commodity Futures Trading Commission will not allow aggregation of trades from different accounts to qualify for block swap disclosure delays, according to new rules proposed by the CFTC.
While disclosure delays are important to preserve market liquidity in big trades, the CFTC is concerned that if too many trades qualify for the block trade delay, transparency will become clouded in the swaps market.
Many exchanges the CFTC regulates already prohibit aggregation, including the Chicago Board of Trade and the New York Mercantile Exchange.
The commission is asking the public to comment on an exception to the proposed rule which allows commodity trading advisors with more than $25 million in assets under management to aggregate trades into blocks.
The public has until July 27 to comment on the proposed rule.
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