CFTC Considering Regulating Chicago Climate Exchange Futures Contracts

The Commodities Futures Trading Commission (CFTC) issued a Notice of Intent to determine whether to regulatethe Chicago Climate Exchange’s (CCX) Carbon Financial Instrument (CFI) to “promote transparency and guard against fraud, manipulation and other abuses.” The agency initiated a now-expired 15-day public comment period, and the industry now awaits a final order as to whether the CCX contract serves a “significant price discovery function,” in which case the CFTC will move to regulate as it sees fit. In a statement, the CCX welcomed the decision.