Three of the U.S. largest trade groups representing the derivatives industry have said to the Commodity Futures Trading Commission that it needs to be a lot more lenient on how it will monitor market manipulation when it implements its greater authority under the Dodd-Frank financial reform legislation.

In a joint letter issued December 28, the Futures Industry Association, the Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association, said the CFTC must describe in proposed new rules how it will differentiate legitimate trading practices with those it has determined can lead to market manipulation.

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