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Companies Benefiting from Regulation of the Derivatives Market | PowerOptions Web Log
Treasury Secretary Timothy Geithner is proposing requirements that will improve the transparency of over the counter derivatives trading on instruments such as interest rate and credit default swaps. Geithner calls for electronic execution of trades to replace the current system, which mostly involves telephone orders. The goal is to make price information on these derivatives continuously available to investors via electronic means, much like stock and options price data. The increased transparency will level the proverbial playing field by preventing price manipulation and will reduce risk to “less sophisticated investors”. Whether these changes will benefit swaps traders remains to be seen, but stock traders are already making plays related to the proposed regulations. Here are a few companies that could see an increase in their stock prices as a result of the new derivatives rules: Sign up now for PowerOptions 14-day free trial 1. CME Group, Inc. (CME) CME Group...