P.M. BRIEFING : Dual-Trading Restrictions Seen
- Share via
WASHINGTON — Federal futures market regulators are now ready to restrict dual trading, the controversial practice that allows traders to conduct transactions for their own accounts as well as those of customers, a Senate committee was told today.
Wendy L. Gramm, chairwoman of the Commodity Futures Trading Commission, said a long-awaited study by the agency found that dual trading does not have the impact on futures markets that its supporters have claimed.
She told the Senate Committee on Agriculture, Nutrition and Forestry that the CFTC, which regulates the nation’s futures markets, “is prepared to write rules to restrict dual trading subject to certain exceptions.”
Dual trading is not illegal, but critics have said it raises serious conflict-of-interest problems for traders who might put their own interests ahead of those of their customers. But supporters say it is necessary to keep the markets liquid when there is little trading--especially on small, low-volume exchanges.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
More From the Los Angeles Times
Podcasts
John Orr was a renowned fire investigator who was also a prolific arsonist, and whose thinly veiled novel helped to convict him. In this episode we hear from the fire captain who first suspected him—and from Orr himself.
Tom Girardi was a legal legend—until he was found guilty of stealing millions from his own clients. Host Madison McGhee and pop culture commentator Kiki Monique unpack how his downfall became a Real Housewives scandal, and what Erika Jayne may or may not have known. Plus, L.A. Times reporter Harriet Ryan joins to share how she helped bring Girardi’s crimes to light.
Sammy Roth visits America’s second-largest nuclear plant, Arizona’s Palo Verde Generating Station, and sits down with three experts to explore the pros and cons of atomic energy.
