CFTC clears OTC ethanol contracts

By | January 03, 2009
The Commodity Futures Trading Commission issued an order to the Chicago Board of Trade to clear over-the-counter (OTC) ethanol contracts Oct. 9. The order allowed the Chicago Mercantile Exchange and registered futures commission merchants to commingle eligible contract participants' funds used to margin, secure or guarantee contracts executed in the OTC markets with other funds held in segregated accounts. The order also calls for CME and the futures commission merchants to apply appropriate risk management procedures to these transactions and to provide specified information to the CFTC.