Prop firms press CFTC to loosen trading rules

摘要

Chicago-based prop trading firms are ramping up pressure on the CFTC to relax rules that require large non-bank derivative traders to register as swap dealers for the purposes of transacting on swap executions facilities. The companies have called on the regulator to remove restrictions they claim limit the ability of so-called floor traders to compete with banks on the electronic venues designed to increase transparency in the over-the-counter derivatives market. They key characteristic of a "floor trader" is that it acts on its own account. "Floor trading firms want to be able to operate on a level playing field with banks in providing liquidity on swap trading venues, and right now that isn't happening," said Chris Hehmeyer, chief executive of prop trading firm HTG Capital Partners.