CFTC won’t seek tougher voting stake rules-sources
The CFTC does not plan to toughen their proposal to limit banks' voting power in derivatives clearing and trading venues, despite concerns by the Justice Department the rule may not combat anti-competitive practices, according to people familiar with the matter.
A draft of a final rule, which is slated for a vote by the CFTC on Thursday, would place percentage caps on the voting shares that clearing and trading member firms can control, and would also shake up the board structure at clearing and trading venues by requiring more representation by public directors.
But the plan's voting caps are unlikely to force any banks to give up some of their voting rights in most major clearinghouses and trading platforms operating today.
Publication
Reuters
Date
January 7, 2011
Cross References (links may require a Cabinet subscription)
Dodd-Frank Act, Title VII, Secs. 725(d) 726
17 CFR Parts 1, 37, 38, 39, and 40
76 FR 1213