On Wednesday, INTL FCStone said it dropped its plan to purchase Cleartrade Exchange, Asia's online commodities exchange. The US commodities brokerage said that its move was due to the difficulties caused by the newly-issued financial guidelines.
In mid-May, INTL FCStone, a New York-based mid-sized broker, announced that it would buy Sinagapore-headquartered Cleartrade's controlling stake. The purchase was supposed to be its first major venture in Asia. According to INTL's officials, the developed Dodd-Frank financial regulations destroyed the deal.
"We cannot proceed because the just-published Dodd-Frank Swap Execution Facilities has complicated Cleartrade's regulatory status," Sean O'Connor, INTL FCStone's Chief Executive, told Reuters through a telephone interview.
Under the Swap Execution Facilities, US authorities headed by Commodity Futures Trading Commission would be able to expand their authority by setting threshold for trade positions. They would also establish and implement cross-exchange position limits.
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