CFTC Solicits Comment On ICE Futures' Pre-Hedging Proposal

The CFTC Division of Market Oversight requested comments on a rule amendment certification filing by Intercontinental Exchange ("ICE") Futures U.S. ("IFUS"). The amendment would allow the parties in a block trade to engage in the pre-hedging of a position that they believe in good faith will arise from the consummation of the block trade, excluding situations in which intermediaries take the opposite side of their own customer orders. The CFTC Division of Market Oversight determined that, due to certain complexities, the decision on the proposal should be stayed in order to extend the review period for an additional 90 days.

The Division noted that the submission by IFUS will become effective upon the expiration of the 90-day review period, unless the CFTC notifies ICE Futures U.S. of a CFTC (i) determination to withdraw the stay prior to the end of the 90-day review period, or (ii) objection to the proposed certification on the grounds that it is inconsistent with