CME blasts 'wash trading'

Chicago Mercantile Exchange (CME) moved last week to prevent what it calls wash trades or fictitious trades in its Eurodollar futures, prompting some observers to suggest the exchange had competitive rather than regulatory reasons for doing so.

The exchange said it will not allow block trades on one exchange to be simultaneously offset by block trades on CME. The action stems from an 11 June trade in which 36,120 Eurodollar contracts were executed on Euronext...