CME, CFTC rule conflict could end invoice spread market

CFTC 230
By Daniel O'Leary
15 Sep 2014

Invoice spreads, typically interest rate swaps against futures contracts, could bit hit by a decline in liquidity when the US Commodity Futures Trading Commission’s next swap execution facility package trade exemption expires in November.

The regulator CFTC’s SEF rules are directly opposed to the exchange rules of CME Group on invoice spreads, one SEF official in New York said.

CME rule 538 deals directly with exchange for related position transactions that involve a privately negotiated off-exchange execution of an exchange-traded futures or options contract ...

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