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.
swaps are already being cleared and the vast majority involve plain vanilla interest rate products where an end user transfers floating rate risk for the certainty of a fixed interest rate with so-called swap dealers serving as market makers.
The odd thing is that a regulatory overhaul that began as a way to rein in the lawless world of over-the-counter trading and apply futures industry style regulation will, in the end, arguably have a greater impact on the already regulated futures world than the OTC space.
The past couple of years have been rough on experienced traders, not to mention emerging managers. In our annual review of new talent, here are three managers who successfully have ridden out the post-2008 aftershocks still affecting the business and markets.
Pete Nessler, CEO of FCStone Group, was raised in Chicago but earned his stripes in the grain fields of Iowa. Working with elevators and farmers, he helped turn Farmers Commodities Corp. from a group of co-ops into the international brokerage firm INTLFCStone that it is today.