On Jan. 4, ELX Futures wrote a letter to CFTC Chairman Gary Gensler regarding ELX’s rule on Exchange of Futures for Futures (EFF). In October, the CFTC approved the EFF rule, which would allow market participants to trade positions in two different Designated Contract Markets, basically swapping Treasury futures from one clearinghouse to another. CME Group claims the EFF rule would be a violation of its rules.
ELX’s letter requested the CFTC “act promptly to effectuate its approval of the EFF rule by requiring the CBOT to permit the execution of EFFs between ELX and CBOT and prohibiting the CBOT or CME Group from threatening or bringing enforcement action in connection with the execution of EFPs.”
CFTC Chairman Gary Gensler has not commented on the issue.