After listening to the CFTC hearing yesterday, I thought it might be useful to offer up a quick overview of the positions taken during the testimony yesterday in the hearing to examine trading on regulated exchanges and exempt commercial markets.
First, Jeffrey C. Sprecher, chairman and CEO of the Intercontinental Exchange (ICE), who arguably has the most to lose if exempt commercial markets (ECM) become subject to the same level of regulatory scrutiny as designated contract markets (DCM), seems willing to accept that outcome as an eventuality for commodities like natural gas, which have specific analogs in the regulated futures markets. He argues for a highly targeted approach.
