GFI’s registration with the CFTC to launch a DCM in the US is the latest move from market participants seeking to adapt to the new world of trading. But the implications of regulatory change remain far from clear, as do GFI’s intentions, says William Mitting.
Last month, it was revealed that GFI Group, the wholesale
broker, had a pending application with the Commodity Futures
Trading Commission to launch GFI Futures Exchange. The
application comes as delays to the rules governing how swaps
will be traded on Swap Execution Facilities continue to cause
consternation in some areas of the market.
On the face of it, GFI’s plan to operate a futures
market makes sense. Punitive rules governing the margining of
swaps and continued delays in rules over how SEFs will operate
are rocking the balance of power firmly in favour of the
If the application is successful, GFI will join rivals BGC
Partners, which operates the ELX market in the US, and Icap,
which last year bought Plus Markets, one of five exchanges with
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