Chicago Mercantile Exchange (CME) moved last week to prevent
what it calls wash trades or fictitious trades in its
Eurodollar futures, prompting some observers to suggest the
exchange had competitive rather than regulatory reasons for
The exchange said it will not allow block trades on one
exchange to be simultaneously offset by block trades on CME.
The action stems from an 11 June trade in which 36,120
Eurodollar contracts were executed on Euronext Liffe while an
offsetting prearranged trade of 36,750 contracts was executed
on CME. CME has since changed its rules to prevent such
activity and sent the rule change to Commodity Futures Trading
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