CBOE, CME clash over credit event contracts

A battle has started between Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) over the launch of credit derivatives contracts.

The debate has raised issues over what would and would not constitute an options or futures contract, but also highlighted the different regulatory regimes and processes at Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) that appeared to give futures exchanges an advantage over securities exchanges.

In a letter to CFTC, CBOE lawyers argued that...