Foreign-exchange traders, already subject to a global probe overalleged manipulation, may face U.S. restrictions on derivativescontracts for some currencies.
Commodity Futures Trading Commission members and staff areweighing whether to require that contracts for non-deliverableforwards be guaranteed at clearinghouses that accept collateralfrom buyers and sellers. The regulation would apply the clearingrule to contracts for a dozen currencies, including China's yuan,South Korea's won and Brazil's real.
The CFTC's global markets advisory committee, led byCommissioner Mark P. Wetjen, plans to discuss the matter at an Oct.9 meeting that is scheduled to include agency staff and DavidBailey, director of financial markets infrastructure supervision atthe Bank of England. A new rule would expand on CFTC mandates thatrequire clearing for interest-rate and credit-default swaps.
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