FOA slams single European market plans for commodity derivatives
The London-based Futures and Options Association (FOA) today said it was concerned that plans to include commodity derivatives within the European Commission’s new Investment Services Directive (ISD) and related Capital Adequacy Directive (CAD) could force firms to exit the commodity derivatives market.
Anthony Belchambers, chief executive of the FOA, said a KPMG report showed that the application of banking-style CAD rules to commodity houses resulted in a shortfall of capital resources against regulatory capital requirement. This impact on commodity houses raises concerns about the fairness of imposing rules
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