Commodity Online WASHINGTON DC: US regulator,Commodity Futures Trading Commission (CFTC) has approved final rules and rule amendments that increase the Commission’s oversight of exempt commercial markets (ECMs).
The rules implement provisions of the CFTC Reauthorization Act of 2008, which created a new regulatory category—ECMs with significant price discovery contracts (SPDCs)—and subjected these electronic trading facilities to additional regulatory and reporting requirements. The rules will become effective on April 22, 2009.
Trading platform that even a 5 year old can trade. Join now“This is a step in the right direction to increase transparency and accountability in these markets so we can better protect market participants and the public at large,” said CFTC Acting Chairman Michael V. Dunn. “The final rules put in place the framework in which we will exercise our new authority to police these important contracts.”
The rules revise the information-submission requirements applicable to ECMs; establish procedures and standards by which the CFTC will determine that an ECM contract performs a significant price discovery function; provide guidance with respect to compliance with nine statutory core principles for ECMs with SPDCs; and amend existing regulations applicable to registered entities in order to clarify that such regulations are now applicable to ECMs with SPDCs.
