“The CFTC is providing only three business days for the public to analyze these rules and submit comments. To make a thorough examination within such a short time-frame is an impossible task for our member firms, and we presume for other interested parties as well,” Damgard said.
“We recognize the desire to proceed in a fashion that does not delay the implementation of the CBOT-CME clearing link. We certainly see a number of positive aspects to this link, such as the potential cost savings. However, we believe it is important for the CFTC to carefully consider the implications of determining that the implementing rules comply with the Commodity Exchange Act.
A preliminary reading of the CBOT submission suggests that the proposed regulation 701.01 raises some important legal and policy issues. The CBOT is asking the CFTC for authority to order clearing firms to abrogate the existing contractual relationships between themselves and the clearinghouse. These powers could be used not only in relationship to the CBOT-CME link but at any future time. This is a very broad rule, and we believe the industry deserves more time to consider its implications. Rather than ask the CFTC to act on such a rapid timetable, the CBOT has the option to self-certify its rules, as it has done with other parts of the clearing link implementing rules.”