Energy Metro Desk Article: "Exchange Rising" (with Lofchie Comment)

Linked below is an article entitled "Exchange Rising," which originally appeared in the Energy Metro Desk. This article discusses the recent trend of intermediaries to register as DCMs rather than SEFs due to the costs and legal complexities of the CFTC's new SEF rules.

Lofchie Comment: The fundamental argument made in the article is that the CFTC has so overregulated "swap execution facilities" that it is simply not worthwhile to register an entity in that category. This is another replay of "futurization"; i.e., the CFTC's new regulation of swaps is so onerous that the market does everything possible to escape it, even if that means a partial shutdown.

Click here to view the article in full.The above link is an excerpt from the most recent issue of Energy Metro Desk, which is published biweekly by Scudder Publishing Group, an energy trade news publishing company based in the Washington, D.C., metropolitan area. Those interested in learning more about the Energy Metro Desk may do so by linking to www.energymetro.com or emailing [email protected]. Reprinted with permission of the publisher, Scudder Publishing Group, LLC. Copyright 2013.