INTL FCStone Inc, a U.S. commodities brokerage announced that it has dropped plans to buy an online commodities exchange in Asia.
The reason for the drop of plans is due to complications posed by newly-issued financial regulations.
INTL FCStone, with headquarters in New York, announced in mid-May that they were seeking a controlling stake in Singapore-based Cleartrade Exchange as part of their first major push into Asian market.
The expanded Dodd-Frank financial regulations in the United States have scuttled the deal for INTL FCStone Inc.
Sean O'Connor, INTL FCStone Chief Executive told Reuters over the telephone, "We cannot proceed because the just-published Dodd-Frank Swap Execution Facilities has complicated Cleartrade's regulatory status."
Based on the Swap Execution Facilities, U.S. regulators like the Commodity Futures Trading Commission will have the power to expand their authority on setting limits for trade positions. The Commodity Futures Trading also will be able to establish and execute cross-exchange position limits.
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