On December 4, the Commodity Futures Trading Commission released a report of the results of its Division of Market Oversight’s (Division) Rule Enforcement Review of the Chicago Board of Trade, Chicago Mercantile Exchange, Commodity Exchange, Inc. and New York Mercantile Exchange, Inc. (collectively the CME Group).
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The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission has issued a report summarizing stress tests conducted by three derivatives clearing organizations (DCOs): the Chicago Mercantile Exchange (CME), ICE Clear US (ICUS) and LCH Ltd (LCH). During the stress tests, DCR evaluated whether each DCO could obtain, in a timely manner, the funds necessary to meet the settlement obligations resulting from the simultaneous default of two large clearing members. DCR also evaluated whether the need for liquidity at multiple DCOs under such circumstances might have systemic implications.
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On November 4, CME Group issued Market Regulation Advisory Notice RA1518-5 (Notice) to provide regulatory guidance to market participants concerning CME Group Exchanges’ rules on position limits and exemptions, and position accountability. The Notice also provides interpretative guidance related to each Exchange’s osition limit, position accountability and reportable level table in the Interpretations section at the end of chapter 5 of each Exchange’s rulebook.
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On November 2, CME Group issued Market Regulation Advisory Notice RA1517-5 (Notice) related to the supervision of employees and agents conducting business on the CME Group Exchanges. The Notice reminds Exchange members that they are strictly liable for the acts of employees or agents acting within the scope of their employment, including any automated trading system operated by any party. Therefore, all members should ensure that they have adopted and effectively execute appropriate supervisory procedures.
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CME Group has issued a market regulation advisory notice related to block trades that combines and supersedes similar advisory notices issued by (1) the Chicago Mercantile Exchange and the Chicago Board of Trade and (2) the New York Mercantile Exchange and COMEX. The combined market regulation advisory notice, which will be effective on May 29