CMC Signs onto Coalition Comment Letter

CMC signed on to this comment letter, along with other allied trade associations. This is a letter to the CFTC requesting exemptive relief from clearing and trading requirements for centralized treasury affiliates of non-financial end users.

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Sanjeev Joshipura of the Commodity Markets Council on Dodd-Frank in 2013

Sanjeev Joshipura, President of Commodity Markets Council, talks about how Dodd-Frank rules will impact his membership base.  Joshipura talks with JLN editor-in-chief Jim Kharouf about the future of the controversial position limit rule, which was vacated by a US District Court on September 28, 2012.  A new position limit rule is expected from the CFTC, which will include a cost-benefit analysis.  CMC is also focused on the CFTC’s reauthorization this year and the continuation of EMIR regulations.  Joshipura also talks about US and EU regulatory harmonization and the challenges facing that goal.

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.

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

CFTC Approves Application of Chicago Mercantile Exchange, Inc. for Provisional Registration as a Swap Data Repository

CFTC Approves Application of Chicago Mercantile Exchange, Inc. for Provisional Registration as a Swap Data Repository

The U.S. Commodity Futures Trading Commission (CFTC) on November 20, 2012, approved the application of Chicago Mercantile Exchange, Inc. for provisional registration as a swap data repository pursuant to section 21 of the Commodity Exchange Act and section 49.3(b) of the Commission’s regulations.

CFTC Updates

CFTC’s Office of General Counsel Responds to Questions Regarding Certain Physical Commercial Agreements for the Supply and Consumption of Energy

Washington, DC — Today, the Commodity Futures Trading Commission’s (CFTC) Office of General Counsel (OGC) is providing its view, in the form of an answer to frequently asked questions (FAQ), in response to questions from market participants and other interested parties regarding the classification of certain physical commercial agreements for the supply and consumption of energy that provide flexibility set forth in the CFTC’s joint Federal Register release with the Securities and Exchange Commission entitled Further Definition of “Swap”; “Security-Based Swap”; and “Security-Based Swap Agreement”; Mixed Swaps; Security-Based Swap Agreement Recordkeeping (“Release”).

OGC is issuing this FAQ to help market participants and other interested parties better understand and apply the three-part test set forth in the Release for determining when such physical commercial agreements should not be considered to be commodity options.

Please contact the CFTC Office of Public Affairs at 202-418-5080 with any media inquiries.

 

CFTC Seeks Public Comment on Request from ICE Clear Europe Limited for Order Permitting Portfolio Margining of Swaps and Security-Based Swaps in a Customer Account

  • The Commodity Futures Trading Commission (Commission) is requesting public comment on a petition submitted by ICE Clear Europe Limited (ICE Clear Europe) for an order pursuant to Section 4d(f) of the Commodity Exchange Act (Act).

The following Proposed Rule has been published:

  • 77 FR 67866
    17 CFR Parts 1, 3, 22, 30, and 140 Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations

Capital Alpha Partners on CMC Policy Call

Joe Engelhard of Capital Alpha Partners discussed the possible outcomes of financial regulatory initiatives on this week’s call. He sees the regulatory climate being busy for anyone affected by international land domestic financial rules. On the US legislative front, he expects marginal changes but no wholesale repeal of the Dodd-Frank law.