New exchange rules proposed by CFTC

Commodity Futures Trading Commission (CFTC) has proposed new exchange governance and conflicts of interest rule changes that many believed could be a source of ire to US exchanges.

CFTC began taking comment letters last week with a focus on acceptable practices as cited in Commodity Exchange Act, which requires that "exchanges minimise conflicts of interest in their decision-making processes."

The commission's proposed acceptable practices would require each designated contract market's board of directors to be composed of at least 50% non-member public directors. They...