CME Group Response to CFTC Swap Report

CME Group, issued the following statement in response to the Commodity Futures Trading Commission (CFTC) report on Swap Dealers and Index Traders:

"We commend the Commission and its staff's hard work on this report to ensure that exchange-traded and over-the-counter (OTC) derivatives markets in energy and agriculture products are functioning properly and to ensure that regulators have sufficient information to understand the activity of market participants across both commodity markets.

Throughout the recent turmoil in financial markets, the performance of CFTC regulated futures exchanges stands in welcome contrast to the OTC markets, and we believe the need for transparency, access to relevant trading data and the protections afforded by central counterparty clearing services has never been greater in financial and commodity derivatives markets. The Commission's recommendation to further promote policies that enhance and facilitate clearing of OTC derivatives is both welcome and fully supported by CME Group.

Furthermore, the Commission report supports the fact that fundamental factors of supply and demand are driving market prices. As the data from the Commission's report clearly shows, speculative trading positions by index traders in crude oil actually declined while prices in oil continued to rise. This data unequivocally demonstrates that market fundamentals have been influencing pricing trends.

CME Group intends to work with the Commission to ensure that the market regulation and customer protection mechanisms in U.S. futures markets are unmatched and we anticipate a greater need for transparency in the OTC markets. As a global industry leader, CME Group looks forward to participating in the ongoing analysis, discussion and debate concerning these matters. CME Group consistently works with our industry and market users to make sure our markets remain sound as part of the most efficient, transparent marketplace in the world."