U.S. derivatives regulators are weighing tighter oversight ofretail currency brokerages' overseas units after FXCM Inc. washobbled by client losses last month.
The Commodity Futures Trading Commission (CFTC) is consideringrestricting how much firms can be exposed to highly-leveragedtrades made by clients outside the U.S., Chairman Timothy Massadsaid in Washington on Wednesday.
“We're looking at our rules,” Massad told lawmakers at a Househearing. He said many U.S. brokerages wind up assuming risk fromtrades made through foreign affiliates, which permit higherleverage than the 50-to-1 ratio allowed in the U.S.
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