CME Comments on Debt Securities

HedgeWorld.com - April 27, 2006
by Christopher Faille - Financial Correspondent

CHICAGO (HedgeWorld.com)—The Chicago Mercantile Exchange Inc. has commented on joint proposed rules of the Securities and Exchange Commission and the Commodity Futures Trading Commission concerning futures and security futures on debt securities and debt securities indexes.

When these proposed rules were first published there was some speculation that they might amount to bad news for banks, because exchange listings of futures contracts on debt securities indexes could cut into the business banks do on such instruments over the counter. But Janet Tavakoli, of Tavakoli Structured Finance Inc., Chicago, disagreed with such speculation.

Futures, she said, "may be a welcome enhancement to the bond markets and create more trading and product development" in the way that Treasury futures have enhanced the Treasury bond market.

The CFTC and SEC expect to finalize the new rules by June 30.


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Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct professor of derivatives at the University of Chicago's Graduate School of Business. She is the author of: Credit Derivatives & Synthetic Structures (John Wiley & Sons, 1998, 2001), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, 2008).

Janet Tavakoli's book on the global financial meltdown is Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley 2009).

Clients of Tavakoli Structured Finance have the benefit of proprietary consultation, which is not available in any other paid or public forum. Clients also commission proprietary research and analysis.

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