Brokers slam CME over ‘conflict of interest’ in FCM plan
Clearing members question how CME could be quasi-regulator as well as direct competitor
Derivatives dealers have blasted CME’s decision to formally apply to register as a futures broker, saying the move represents a conflict of interest for the Chicago-based exchange and clearing giant.
In August, CME submitted an application with the National Futures Association, which maintains a register of approved clearing members, to become a futures commission merchant (FCM). FCMs make trades on behalf of clients that aren’t themselves members of a clearing house, managing margin payments
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