The Division found that the Exchanges maintain experienced market surveillance staff and an adequate market surveillance program to demonstrate compliance with Core Principles 2, 4 and 5. The Division did not identify any deficiencies but made one recommendation—that the Exchanges should consider implementing a formal review process by which the market surveillance department can verify that a market participant, who has a position larger than a position limit is, in fact, making use of an exemption, consistent with the strategy described in their exemption application. … [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. … [Read more...] about Chicago Mercantile Exchange (CME) Group Introduces Self-Match Prevention
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 in determining whether a transaction is a transitory EFRP. However, an exchange of futures for physicals in foreign currency futures in which the foreign currency position is immediately offset is permitted under revised CME Group Exchanges’ Rule 538.K. … [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. … [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. … [Read more...] about Commodity Futures Trading Commission (CTFC) Seeks Comments on Amended Exchange for Related Position (EFRP) Rule