On October 13, the Division of Market Oversight (Division) of the Commodity Futures Trading Commission released the results of its rule enforcement review of the market surveillance program of the New York Mercantile Exchange, Inc. and the Commodity Exchange, Inc. (collectively, the “Exchanges”). The review, which focused on the period from March 1, 2014 through March 1, 2015, focused on the Exchanges’ compliance with Core Principle 2 (Compliance With Rules), Core Principle 4 (Prevention of Market Disruption), Core Principle 5 (Position limitations or Accountability) and regulations related to the Exchanges’ market surveillance program. The purpose of the review was to determine 1) whether the program complies with the Core Principles and CFTC regulations; 2) whether there are any deficiencies in the program; and 3) whether the Division should make any recommendations to improve the program. For the purposes of rule enforcement reviews, a … [Read more...] about CFTC Releases Rule Enforcement Review of the New York Mercantile Exchange, Inc. and the Commodity Exchange, Inc.
New york mercantile exchange
On June 17, the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange and Kansas City Board of Trade issued an advisory notice that provides updated guidance on compliance with the exchanges’ rules prohibiting wash trades, as well as information regarding the introduction of self-match prevention functionality on CME Globex. Beginning in June, the exchanges will introduce an optional self-match prevention functionality that, when employed, will automatically block the matching of buy and sell orders that are submitted to CME Globex with the same executing firm ID and the same self-match prevention ID. When the self-matching function is enabled, the trading engine will prevent opposing orders that have been entered with the same self-match prevention ID from matching by cancelling the resting order(s) and processing the incoming order. Additional information on the self-matching prevention functionality and registration process for obtaining … [Read more...] about Chicago Mercantile Exchange (CME) Group Introduces Self-Match Prevention
CME Group has issued an advisory notice prohibiting transitory exchange for related positions (EFRPs) on each of the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX) and the Commodity Exchange (COMEX). Pursuant to the advisory notice, transitory EFRPs, which had previously been permitted in CME foreign currency products, NYMEX energy products and COMEX and NYMEX metals products, will no longer be permitted as of June 2, 2014.As provided in the advisory notice, a transitory EFRP is one whose execution is contingent upon the execution of another EFRP or related position transaction where the transactions result in the offset of the related positions without incurring market risk that is material in the context of the related position transactions. Under the newly articulated policy, each transaction must have integrity as an independent transaction exposed to market risk. The time period between transactions is also a factor … [Read more...] about Chicago Mercantile Exchange (CME) Group Issues Notice Prohibiting Transitory EFRPs
On April 23, CME Group Inc. issued a special executive report informing market participants that it has launched a searchable database of disciplinary actions, summary access denial actions and emergency actions taken by the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange and Commodity Exchange, Inc. Market participants will be able to search the database for exchange actions dating back to 2010 by date range, category or keyword. The special executive report also indicated that the exchanges will continue to disseminate summaries of exchange actions via email. The searchable database is available here. The special executive report is available here. … [Read more...] about CME Group Inc. Launches Exchange Action Database re: Futures and Options Exchanges
On September 19, the Commodity Futures Trading Commission requested public comments on proposed amendments to the exchange for related position (EFRP) rules and Market Regulation Advisory Notice of the Chicago Mercantile Exchange, the Board of Trade of the City of Chicago, the New York Mercantile Exchange, the Commodity Exchange and the Board of Trade of Kansas City. The proposed revisions would prohibit transitory EFRPs and EFRP transactions between commonly controlled accounts. The revised rules and guidance also would prohibit the use of EFRPs to transfer funds between parties, permit the use of certain EFRP transactions in connection with inventory financing and clarify the recordkeeping and trade data submission requirements for EFRPs. The CFTC’s request for comment is available here. The proposed rules and guidance are available here. … [Read more...] about Commodity Futures Trading Commission (CTFC) Seeks Comments on Amended Exchange for Related Position (EFRP) Rule