Concerns with the CME

Discussion in 'Trading' started by londonkid, Feb 8, 2016.

  1. londonkid

    londonkid

    I wanted this thread to serve as a record of concerns traders have with the CME. I am going to start off, believe me I have a few.

    GFX Corp is a wholly owned subsidiary of CME Group that provides liquidity in foreign exchange futures. This is taken directly from the CME website (source http://investor.cmegroup.com/investor-relations/management.cfm?bioID=16085). Bryan Durkin is president of the firm and he is also CCO of the CME.

    Now what I don't understand is why the CME group is allowed to run and operate a proprietary trading firm on an exchange that is also operates. That seems to me like a conflict of interest. Bryan is also member of the CFTC technology adviser committee. Surely this is a huge conflict of interest.
     
    VPhantom and i960 like this.
  2. londonkid

    londonkid

    i960 likes this.
  3. Visaria

    Visaria

    I agree with the first post, clear conflict of interest. Don't agree with the second post, central banks trading is not the CME's concern.
     
  4. londonkid

    londonkid

    The reason I don't like central banks having a central bank incentive program is that they have quite deep pockets. This means they can iceberg or growler prices/price ranges at times of their choosing and unload higher up at suitable times. They can do this all at preferential rates.
     
    Pricechange and der_kommissar like this.
  5. Visaria

    Visaria

    Fair point.