Futures industry officials applauded the success of
the Commodity Futures Modernisation Act (CFMA) of 2000 before Congress last week before asking legislators to consider some regulatory changes that would address fx fraud, single stock futures (SSFs) and self regulatory organisation rules.
The landmark legislation is up for review this year as part of Commodity Futures Trading Commission's (CFTC) reauthorisation. Last Tuesday, industry officials told the US Senate Agriculture, Nutrition and Forestry Committee, which oversees the agency, that some tweaks need to be made, particularly in fx futures oversight.
In addition there was some dispute about the status of exchanges as self-regulatory organisations (SROs). John Damgard, president of Futures Industry Association, differed with Chicago exchange executives over self regulation and the right of exchanges to change their rules. Damgard said such freedom allows exchanges to make changes that can be anti-competitive - by doing so apparently backing Euronext Liffe in its...