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FIA battles Lynch amendment limiting ownership of clearing houses


John Damgard, president of the Futures Industry Association, has written to leading US congressmen to protest against an amendment tabled by Representative Stephen Lynch that would prevent financial institutions collectively from owning more than 20% of a clearing house that cleared security-based swaps.Damgard wrote to the ranking Democratic and Republican congressmen on the House of Representatives' Committee on Financial Services and its Agriculture Committee, which are together overseeing legislation to reform the over the counter derivatives market.The amendment from Lynch,a Democratic representative from Massachusetts,...

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“The banks are investors too. I can’t favour investors with inside information – that’s basically what this is.”

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