Eurex's US futures exchange application came under intense
scrutiny in a Washington hearing last Thursday, shedding new
light on several details of the exchange as well as regulatory
opinions recently raised by competitors.
Members of the US House Agriculture Committee questioned
Mike McErlean, president and ceo of Eurex US, Jim Newsome,
chairman of Commodity Futures Trading Commission (CFTC),
Chicago's exchange leaders, as well as trade association
members about a host of issues surrounding the exchange's
application. The nearly three-hour meeting covered questions
about market practices allowed by Eurex US as well as
regulatory oversight, self-regulation, its ownership and board
structure and market incentive programs.
Ultimately, the Ag committee can do little to prevent the
application from being approved or rejected by CFTC. But
because the committee oversees the regulator, it can exert
pressure on CFTC. Political pressure, for example, helped push
CFTC to move Eurex's application from the 60-day fast track to
the 180-day review process. That move was applauded by several
members of the committee.
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