CME pulls client default rule change after pushback
FCMs claim proposal gave clearing house too much power in customer defaults
CME Group has temporarily withdrawn a controversial rule change after pushback from major clearing firms, who argued the proposal gave the bourse too much power to intervene in the management of a client default.
Futures commission merchants (FCMs) managing a client in default often look to transfer the stricken firm’s positions to their own house account. But in a filing with the US Commodity Futures Trading Commission on August 11, CME proposed barring such transfers unless the CME’s chief
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