CME Group Inc. (CME), the owner of the world’s largest derivatives market, asked the Commodity Futures Trading Commission to approve a change to its rule barring traders from engaging in transactions with themselves.
Following discussions with the CFTC’s market oversight division last month, the Chicago-based exchange operator withdrew a notification that it was making the change under its own self-regulatory authority. Laurie Bischel, a CME spokeswoman, confirmed the CFTC request in an e-mail.
The company has faced resistance and criticism over how it handles the transactions, known as wash trades. Bart Chilton, a CFTC commissioner, said last month that CME’s proposal for the transactions needed more review. Chilton, one of three Democrats on the commission, said the agency should take additional steps to vet CME’s guidance and determine if other exchanges will have similar or better policies.