CFTC Asks SEC To Exempt Credit Default Options

Law360, New York (May 14, 2007, 12:00 AM EDT) -- The Commodity Futures Trading Commission has asked the U.S. Securities and Exchange Commission to exempt certain credit default products from provisions of the Commodities Exchange Act in hopes of bringing the products to the marketplace.

The CFTC on Friday asked the SEC to review a proposal that would exempt credit default options and credit default basket options from CEA regulations governing the selling and clearing of options.

The Options Clearing Corp., in conjunction with the CFTC, has asked the SEC for permission to clear and settle...
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