China asks brokerages to curb leveraged stock trades ...Middle East

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China asks brokerages to curb leveraged stock trades
China asks brokerages to curb leveraged stock tradesFULL STORYChina's securities watchdog is asking brokerages to restrict leverage available to hedge funds that borrow large sums of money via a complex derivative business to trade stocks, three sources told Reuters. Hedge funds using the so-called DMA-Swap strategy were told by their brokers late on Wednesday to start limiting leveraged bets, two sources who received notices from regulators said.Through the DMA-Swap, hedge funds can borrow up to $4 against every $1 they deposit with the broker in the margin account, while also skirting regulatory borrowing limits by having such trades sit on brokers' books. This article was

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