In May 2008, the Commodity Futures Trading Commission (CFTC) was “reauthorized” by Congress. In the reauthorization, the CFTC’s authority over Exempt Commercial Markets like the IntercontinentalExchange Inc. (ICE), particularly with respect to the trading of Significant Price Discovery Contracts (SPDC), was significantly enhanced. SPDCs are contracts that are linked to existing exchange-traded contracts; are traded on an electronic exchange; and perform a “significant price discovery function.” In March of 2009, the CFTC finalized its rulemaking regarding the definition of SPDCs and its process for designating contracts as SPDCs.
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CFTC Designates the First “Significant Price Discovery Contract”
Wednesday, July 29, 2009 1:21 pm by Bill WolfCategory: Natural Gas/LNG, Organized Markets