The recent CFTC approval of both Cantor Exchange and Trend Exchange’s applications for Designated Contract Market (DCM) status, the approval of Trend Exchange’s first MBOR contract and expected approval of Cantor Exchange’s first MBOR contract are positive events for the SRI.
Why?
1. These approvals establish an affirmative agency level precedent for a new generation of entertainment based financial contracts.
2. There appears to be legal basis for continued operation of these exchanges no matter the outcome of the pending ban contained inside one version of the financial reform bill being worked out in Conference Committee.
3. By the time the SRI is presented for approval, the financial reform bill will be signed into law and it will NOT contain prohibitions relating to the SRI and its family of contracts.
4. The SRI is a potential candidate for listing on the MBOR exchanges.
Cantor Exchange received approval for their contracts prior to the Congressional ban that followed. So, both exchanges received approval on their contract markets and their contract designs (4 of 4 possible approvals) from CFTC.
October 8, 2010 at 9:39 am