THE COMMODITY FUTURES TRADING COMMISSION will hold public meetings early January on recommendations for its proposed restrictions on dual trading.
Dual trading allows a floor trader to make trades for his own account and a customer on the same day. The practice came under intense scrutiny earlier this year when the government alleged it led to cheating of customer profits.CFTC's dual-trading rule changes would affect the largest U.S. commodity exchanges first and would be phased-in for various contracts. Rule changes at futures centers with less active contracts would follow allow exceptions will be made for some contracts.
Some U.S. exchanges oppose having the agency or Congressional legislation regulating dual trading and back self-regulating changes.
A CFTC study on dual trading has concluded that the controversial trading practice is not paramount to market liquidation, nor does it enhance the execution of trades.
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COMMODITY EXCHANGE INC. closes the books on 1989 in an upbeat mode.
Its gold futures contract, the flagship of precious metals trading in New York, has sprung to life thanks to a host of international developments, not the least of which is the extraordinary events in Eastern Europe and tensions in Central America.
In November 1989, Comex gold trading rose to nearly 1.25 million contracts
from less than 900,000 in November 1988 and volume for December should easily reach that level.
The improvement in volume results year-end apparently is cause for celebration at Comex since it will benefit some of New York City's senior citizens.
Somehow making a connection between the anniversary of 15 years of gold futures trading on Dec. 31, 1989 and the "golden years" of New York's elderly, Comex president Arnold Staloff said Comex will offer senior citizens free use of its phones. The idea behind this phone-a-thon is to allow approximately 160 seniors the opportunity to call friends and family anywhere in the world. The credit for the phone-a-thon goes to Merrill Lynch Inc., which has sponsored a similar program in the past.