Financial Regulatory Forum

By Jonathan Spicer

NEW YORK, Dec 15 (Reuters) – CME Group Inc began clearing U.S.-based credit derivatives on Tuesday, aiming to capitalize on a government push to safeguard a private market blamed for exacerbating the financial crisis.

The launch of CME’s clearinghouse for credit default swaps (CDS) coincides with the date large dealers promised to offer clearing to their clients. It comes more than a year after the venture was announced, and more than nine months after rival IntercontinentalExchange Inc began clearing CDS.

CME, the world’s largest derivatives exchange operator, has from the beginning promoted its clearinghouse as one friendly to buyside firms, six of which are founding members. Citadel Investment Group was CME’s original partner.

“We really had nice, broad participation from founding partners, and from the other clearing members,” Laurent Paulhac, managing director of CME’s over the counter products and services, said of activity on the first day.

The company did not reveal trading volume. A spokesman said open interest will be published on Wednesday.

By Christopher Doering
WASHINGTON, Oct 29 (Reuters) – The head of the top U.S. futures regulator said on Thursday he doesn’t believe the world’s largest exchange has figured out the root cause behind the lack of convergence in the Chicago wheat market.

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By Christopher Doering
WASHINGTON, Sept 16 (Reuters) – The top U.S. futures regulator and two main commodity exchanges were conflicted on Wednesday over who should set tougher position limits if the the Commodity Futures Trading Commission proceeds to take action to curb market manipulation.

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NEW YORK, Sept 16 (Reuters) – CME Group, the giant Chicago-based operator of derivatives exchanges, would impose new position limits on NYMEX energy contracts in response to a push by U.S. regulators for renewed scrutiny in energy trading, CEO Craig Donohue said in an interview Wednesday.
CME would apply the limits, laid out in a CME White Paper released Wednesday, as long as regulators agree to enforce limits in venues where commodities are traded around the world, and extend them to include over-the-counter commodities swap contracts as well, Donohue said.

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