Amendments to regulations that have held back the growth of
single stock futures (SSFs) could soon materialise, according
to Commodity Futures Trading Commission (CFTC) chairman Jim
Newsome told the Senate agriculture committee last week that
he is in talks with officials from Securities and Exchange
Commission (SEC), which shares regulatory responsibility for
Newsome said SSFs "have not been as successful as some had
predicted" and that this was "due in part to the lack of a
risk-based portfolio margining regime for [SSFs] similar to
that used in other futures markets". He expressed hope that
agreement on this and other issues could be reached with SEC
"in the near future".
Both US SSF exchanges welcomed the comments.
Bill Rainer, chairman and ceo of OneChicago and a former CFTC
chairman, told FO Week, "the introduction of portfolio
margining would be a big help." However, he cautioned that
there were other factors hindering the growth of the
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