CFTC Update

CFTC’s Division of Market Oversight Provides Swap Dealers With Swap Data Reporting Relief With Respect To Equity Swaps, Foreign Exchange Swaps and Other Commodity Swaps, Due to Effects of Hurricane Sandy

 

In order to account for certain disruptions to the testing of swap data reporting systems caused by Hurricane Sandy, the Division of Market Oversight of the Commodity Futures Trading Commission (CFTC) today announced the issuance of a letter providing swap dealers with time-limited no-action relief from swap data reporting obligations with respect to equity swaps, foreign exchange swaps and other commodity swaps.

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CME Group Acquires Kansas City Board of Trade

From CME Group:

To Our Valued Customers:

A few weeks ago we told you about CME Group’s plans to acquire the Kansas City Board of Trade (KCBT). We are pleased to announce that the acquisition has been completed, and we will be able to offer you greater capital efficiencies, new trading opportunities and additional products over the coming months.

Today, you can already trade both KCBT’s flagship Hard Red Winter (HRW) wheat futures, the international benchmark for bread wheat prices, and the CBOT Soft Red Winter (SRW) wheat contract, the most liquid wheat futures contract and the benchmark for soft wheat, on CME Group’s Globex electronic trading platform and through open outcry. Combined with CBOT’s nascent Black Sea Wheat contract, this makes CME Group a comprehensive marketplace for the global wheat trader.

As an initial benefit, beginning Monday, December 10, 2012 you will be able to take advantage of implied functionality on CME Globex to trade the KCBT-CBOT Wheat futures spread. This will allow you to capitalize on the price differentials inherent in the two classes of wheat by executing this popular spread as a single trade, rather than by legging into each individual contract. This is just the beginning of the new products and enhancements we plan to provide.

We appreciate your business and look forward to continuing to work with you to provide solutions to your risk management and trading needs.

For more information about this announcement please view our press release.

Sincerely,

Tim Andriesen
Managing Director, Agricultural Products
CME Group