Hedge Funds Review – Futures commission merchants will have a minute to accept or reject trades for clearing under a CFTC rule. Buy-side firms need to be aware of limits they are given and be able to work within them.
As clearing for over-the-counter derivatives takes off, clients may find an increasing number of their trades rejected by the futures commission merchants (FCMs) that stand between them and a clearing house, dealers warn. This is the result of a Commodity Futures Trading Commission (CFTC) rule that means FCMs have a maximum of 60 seconds to accept or reject a trade for clearing, they claim.
