22 October 2017
Register now

CFTC approves CME/CBOT common clearing rules

16 July 2003  |  2982 views  |  0 CFTC approves CME/CBOT common clearing rules

The Commodity Futures Trading Commission, the US futures and options industry regulator, has approved controversial rules submitted by the Chicago Mercantile Exchange and Chicago Board of Trade to establish a common clearing link.

The link is an agreement under which the CME will provide clearing and related services for all CBOT products. Under the terms of the link, clearing services are expected to begin in November.

The Futures Industry Association had protested about the short time-frame available to pass comment on the proposals, which stem from the Cbot's decision to sever its long relationship with Board of Trade Clearing Corporation in advance of the arrival of new competition from Swiss-German derivatives exchange Eurex.

In particular the FIA objected to regulations which would give the Cbot the authority to order clearing firms to abrogate the existing contractual relationships between themselves and the clearinghouse.

John Damgard, FIA president says: "These powers could be used not only in relationship to the CBOT-CME link but at any future time. This is a very broad rule, and we believe the industry deserves more time to consider its implications."

In approving the rules, the CFTC says it is aware of the industry controversy about the proposals, but contends: "The rules are necessary for the orderly implementation of the link and will provide continuity of financial integrity and customer protection in the futures markets."

The Commission says it welcomes further industry input on related policy issues regarding market structure and competition, but believes that this broader dialogue should not impede the planning to implement the common clearing link.

"The Commission believes that it is of paramount importance to enhance legal certainty concerning the procedures to implement the link so that all affected parties may make plans as necessary for a smooth and orderly transition beginning in November."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cbot launches e-Cbot site as Eurex opens US charm offensive

Cbot launches e-Cbot site as Eurex opens US charm offensive

11 July 2003  |  6184 views  |  0 comments
CME expands access to Globex, Clearing 21 and market data

CME expands access to Globex, Clearing 21 and market data

11 July 2003  |  7692 views  |  0 comments
CME unveils electronic trading initiatives

CME unveils electronic trading initiatives

08 July 2003  |  2732 views  |  0 comments
CME appoints Citi to handle FX futures settlement via CLS

CME appoints Citi to handle FX futures settlement via CLS

07 July 2003  |  7436 views  |  0 comments
Eurex and BOTCC ink clearing pact

Eurex and BOTCC ink clearing pact

27 May 2003  |  3534 views  |  0 comments
FIA calls for consultation on CME/Cbot clearing link

FIA calls for consultation on CME/Cbot clearing link

22 April 2003  |  3606 views  |  0 comments
Chicago Board of Trade to shift clearing to CME

Chicago Board of Trade to shift clearing to CME

17 April 2003  |  5840 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.com visit www.vasco.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
11415 views comments | 17 tweets | 24 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
11240 views comments | 22 tweets | 26 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9282 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
8348 views comments | 10 tweets | 22 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8327 views comments | 9 tweets | 18 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job