Futures exchanges, already weathering depressed volumes, look set to see further drains on liquidity as proprietary trading shops steer clear of certain futures markets as a result of a Dodd-Frank driven crackdown on market-disruptive trading practices. Rule 575 of the CME Group's regulatory overhaul defines 'bona fide' trading activity and provides examples of the types of alleged disruptive trading practices - such as spoofing, quote stuffing, and banging the close - that it aims to stamp out. The rule will hit the market on September 15 and comes one year after the CFTC provided a similar clarification, but many feel it extends beyond the regulator's own scope.
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