Demand for clearing transactions are expected to increase over the next few years as regulators force banks and other parties to channel trades through regulated clearing houses to ensure their risk positions can be better monitored.

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These sources claim that Mr Adoboli took advantage of a loophole in securities law by using exchange-traded funds (ETFs) to book these fake transactions, since ETF rules do not force brokers immediately to produce confirmations of trades.

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They also force brokers to buy shares and complete unsettled trades in companies that have had a high level of fails-to-deliver for a long time.

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Utah's governor signed into law last month a controversial measure that would force brokerages in the state to pay issuers if they handle trades that fail to deliver and then do not report those failures to the state securities department within 24 hours.

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