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ARTICLE · 21 JULY 2016

CFTC Extends Comment Period For ICE Futures' Pre-Hedging Proposal

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The stay is based on the premise that the submission presents novel or complex issues that warrant additional time for analysis of consistency as compared to CEA or CFTC regulations.

United StatesFinance and Banking

The CFTC Division of Market Oversight (the "DMO") granted ICE Futures U.S. a 15-day extension of the public comment period and a 45-day extension of the stay period in relation to a rule filing that would allow certain parties to block trades to engage in anticipatory hedging. The stay is based on the premise that the submission presents novel or complex issues that warrant additional time for analysis of consistency as compared to CEA or CFTC regulations.

Under the contemplated amendments, a party to a block trade would be allowed to engage in pre-hedging or anticipatory hedging of the position that it believes in good faith will result from the consummation of the block trade, except for the case where an intermediary takes the opposite side of its own customer order.

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