Federal regulators have bowed to a Wall Street pushback against new rules to oversee the trading of derivatives. The Commodity Futures Trading Commission had been planning on imposing a rule requiring asset managers to seek quotes from five different banks when dealing in derivatives contracts. Supporters say the rule would have increased competition and lessened the control of a handful of firms over 90 percent of the market. But after objections from major banks, the CFTC says it will lower the requirement for soliciting derivatives from five banks to two.
Regulators Back Down on New Derivatives Rule
HeadlineMay 16, 2013