The advent of electronic trading brought an infatuation with for-profit exchanges, while Dodd-Frank brought hope of regulatory protection for the little guys. Neither delivered in 2013 — will 2014 be any different?
The futures industry has had a tough couple of years, and with each storm there has been a dire warning that people will abandon it in droves. But the futures industry, particularly in Chicago, has faced many challenges and usually comes out the other end stronger through its ability to innovate.
The implementation of Dodd-Frank has proven to be much more problematic for the regulated futures industry than initially thought and additional CFTC regulations following the MF Global and Peregrine Financial Group debacles will put extra burden on smaller non-bank FCMs.