Commodity Futures Trading Commission (CFTC) dismissed objections last week and approved rules submitted by Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange (CME) that will pave the way for the exchanges' clearing link next January.
The rule change, approved last Tuesday following a short three-day comment period, allows CBoT to move all of its positions held at Board of Trade Clearing Corporation (BoTCC) to CME Clearing House. The rules' approval was applauded by the exchanges involved and opposed by some in the industry including Futures Industry Association (FIA). John Damgard, FIA president, issued a statement prior to the CFTC approval opposing such a short comment period. He suggested that more time was needed to consider the matter.
"A preliminary reading of the CBoT submission suggests that...