By Ann Saphir
CHICAGO, Jan 26 (Reuters) – U.S. regulators rejected as “unpersuasive” CME Group Inc’s decision to bar traders from moving their Treasury futures positions to upstart exchange ELX Futures by using a block-trade mechanism offered by ELX.
Shares of the world’s largest derivatives exchange operator skidded 6.8 percent on Tuesday even as it defended its stance. CME said the Commodity Futures Trading Commission had not moved to require it to accept so-called exchange of futures for futures (EFF) trades from ELX or its members.
The CFTC has made a formal request to CME to defend its policy further, and the CME is expected to do so in coming weeks.
“Antitrust laws do not require us to take action to enable new entrants to take advantage of our substantial investments in innovation and marketing,” CME Group said in a statement. It added it was confident the CFTC will agree after “full consideration.”
The CFTC’s Jan. 22 letter, which was made public on Tuesday, helped send shares of CME down to their lowest closing price since September.