Industry group favors FERC over CFTC
Felix Shipkevich - December 2, 2009The Electric Power Supply Association and Edison Electric Institute recommend that Congress explicitly limit the CFTC’s authority over wholesale power markets, leaving that oversight to FERC. Subcommittee Chairman Edward Markey has said derivatives legislation approved by the House Financial Services and Agriculture Committees “needs to be fixed” to prevent it from “interfering” with power and [...]
CFTC expected to announce new position limit regime for energy derivatives markets
Felix Shipkevich - November 26, 2009CFTC is expected to announce a new position limit regime for energy derivatives markets by December 21. It is unclear whether new rules for energy products will resemble hard limits or softer accountability levels, which involve market participants making increased disclosures about the nature of big positions. Limits could place constraints on a fund or [...]
CFTC and SEC issue two joint orders related to security-based futures contracts, which clarify jurisdiction
Felix Shipkevich - November 20, 2009The CFTC and SEC issued two joint orders related to security-based futures contracts that clarify each Commission’s respective jurisdiction and allow additional products to underlie security futures.
The first joint order, which became effective on November 17, excludes certain foreign and domestic volatility indexes that are based on broad-based security indexes from the definition of “narrow-based [...]
O’Malia – “end users should not be mandated to utilize exchange trading for all standard swaps”
Felix Shipkevich - November 19, 2009Scott O’Malia, a Republican commissioner who was just confirmed by the U.S. Senate this fall, issued a written partial dissent to testimony Gensler gave before the Senate Agriculture Committee on Nov. 18.
“I do believe that commercial end users should not be mandated to utilize exchange trading for all standard swaps,” O’Malia wrote. “We should enable [...]
CFTC no-action letter permits offer and sale of the mini-TOPIX futures contract
Felix Shipkevich - November 11, 2009The CFTC issued a no-action letter permitting the offer and sale in the United States of the mini-TOPIX futures contract, TOPIX Core30 futures contract and TSE REIT index futures contract.
Mini-TOPIX futures contract is one-tenth the size of TOPIX futures contract, and allows investors to have smaller exposure to TOPIX-based assets. TOPIX Core30, the underlying index [...]
Request that CFTC stay EFF related rule interpretation by CME Group
Felix Shipkevich - October 23, 2009ELX Futures requested that the CFTC stay the rule interpretation by CME Group that would subject the CME’s clearing members to rule enforcement actions should they offer for clearing to the CME’s clearinghouse Exchange of Futures for Futures trades. The letter is below:
October 20, 2009
Mr. David Stawick
Secretary
Commodity Futures Trading Commission
Dear Mr. Stawick:
ELX Futures, L.P. (”ELX”) [...]
CBOT wheat contract broken down as hedging tool?
Felix Shipkevich - October 20, 2009Open interest in the MGE’s cash-settled Soft Red Winter Wheat Index (SRWI) futures has ballooned, jumping from zero on Sept. 25 to 1,258 contracts as of Oct. 16. Traders say the burst of activity for the long moribund grain “index” contracts is directly tied to the travails at the CBOT, its parent the Chicago Mercantile [...]
OCC applauds the release of the joint SEC and CFTC report on the harmonization of regulation
Felix Shipkevich - October 16, 2009Statement from Michael E. Cahill, President and Chief Operating Officer of the Options Clearing Corporation:
“OCC applauds the release of the joint SEC and CFTC report on the harmonization of regulation. OCC Chairman Wayne Luthringshausen testified at the joint meeting on harmonization last month and recommended in particular that there should be harmonization in portfolio margining, [...]
