Judge rules in CME's favor over grain pricing method

The Chicago Mercantile exchange can keep in place rules that factor in electronic trades for settling end-of-day grain futures prices, Reuters reported. According to Cook County Circuit Court Judge Jean Prendergast Rooney in Chicago, CME had the authority to implement the settlement method in June 2012. CME had originally been sued by a group of traders from the CBOT’s 140-year old agricultural trading floor to overturn the method, claiming that it was putting them out of business.

  • Ace Commodity Exchange partnered with Kotak Mahindra Group to launch a commodity exchange in India, with trading in the gold hedge futures contract effective on Tuesday. According to ZeeNews, Ace has launched 3 contracts, which include expiration dates for May, July and September 2014. The trading unit for the contract is 1 kg and the tick size is Re 1.
  • The Australian Securities Exchange urged the Financial Services Inquiry to explore introducing requirements for systematically important financial markets infrastructure assets to be placed off-shore, the Financial Standard reported. ASX also said that having central financial market infrastructure would give Australia’s policy makers and regulators direct control over the infrastructure and give its markets long-term stability, as well as being a pre-condition to being a global financial center.
  • Newedge appointed Steeve Charvet as global head of financial futures options, equities and fixed income execution, FOW Intelligence reported. Charvet joined FIMAT, one of Newedge’s predecessor companies, in 2006 and has served as global head of fixed income at Newedge since 2010.
  • European Central Bank (ECB) executive board member Benoît Cœuré voiced concerns over the consequences of mandatory central clearing of OTC derivatives redistributing and potentially increasing systematic risk, FOW Intelligence reported. Cœuré also stated that while central clearing will bring benefits, “central clearing also involves risk redistribution and potentially the creation of new risks.”
  • U.S. Treasury Department’s Office of Financial Research signed an agreement with the Commodity Futures Trading Commission to help it sort out a raft of swaps data, Reuters reported.
  • CFTC sought public comment on exploring ways on how market participants and trading repositories can ensure that each trader has a valid ID tag known as a legal entity identifier, MLex reported.
About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at mariano@erdesk.com. 

Equity Research Desk (www.erdesk.com) provides fundamental analysis of global capital markets related entities to support the investment process of buy-side analysts at hedge funds and traditional money managers. The company focuses its coverage on securities exchanges, discount brokers, trading platforms, asset managers, financial-related technology companies and intellectual property assets in the US, Europe, Asia, and Latin America.

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