Chicago Board of Trade (CBoT) last week fired back a nine
page letter responding to Futures Industry Association (FIA)'s
concerns over limiting open interest in Treasury futures
contracts (see FO Week Vol 10 No 32). Both letters
were sent to Commodity Futures Trading Commission (CFTC).
The exchange said the US Treasury identified a number of
risks in the cash and repo markets that included impaired
liquidity in the cash market, loss of price convergence in the
futures market, operational cost of resolving fails and
ultimately higher borrowing cost for the government.
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