Yesterday on FOi, Philip McBride Johnson argued in a comment article against ELX Futures’ desire to use exchange of futures for futures. The practice would let traders move interest rate derivative positions between ELX and CME Group. Today, Neal Wolkoff, chief executive of ELX Futures, responds to that article.
The former chairman of the Commodity Futures Trading Commission, Philip McBride Johnson, opined that ELX’s rule on exchange of futures for futures, which the CFTC approved in October 2009, was like the following property trespass:
“RESOLVED, that effective immediately, the Johnson family shall have full and unfettered access to their neighbour’s swimming pool.”
While...