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Public Info posted an update 1 year, 3 months ago
The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) is currently seeking public comment on a proposed no-action position regarding MIAX Futures Exchange, LLC’s (MIAX Futures) plan to temporarily allow the trading of Minneapolis Hard Red Spring Wheat (HRSW) options on futures (HRSW Options) exclusively through block trades. The comment period is very brief, with submissions due by 12 p.m. EDT on June 25, 2025.
Key details of the proposed no-action position and MIAX Futures’ request:
* Reason for Request: The relief is necessary because an electronic trading system for HRSW Options will become unavailable on June 30, 2025. MIAX Futures wants to ensure market participants, including those who are not Eligible Contract Participants (ECPs), can still trade or offset their open positions.
* Proposed Rulebook Amendments (June 30 – August 29, 2025):
* Permit block trading of HRSW Options outside of a centralized market.
* Lower the block trade threshold for HRSW Options from 15 contracts to one contract.
* Allow non-ECPs to participate in block trades of HRSW Options.
* Requested Relief: MIAX Futures is seeking no-action relief from Designated Contract Market (DCM) Core Principle 9, Commission Regulation 1.38, and CEA section 5c(c) and related regulations under Part 40.
* DMO’s Stance: DMO staff proposes granting time-limited relief to mitigate market disruption and give participants more time to manage or exit their HRSW Options positions.
* Urgency of Comment Period: The short comment period is due to the novelty of this block-trade-only proposal and the need for a timely decision before the electronic trading system ceases on June 30, 2025.
The DMO’s mission is to foster open, transparent, fair, competitive, and secure derivatives markets through clear rules and effective oversight. This proposed no-action position reflects their role in adapting to market changes while aiming to maintain market integrity and protect participants.
Comments can be submitted electronically through the CFTC’s online portal, and all comments will be publicly available on CFTC.gov. MIAX Futures’ request and DMO’s proposed no-action letter are also publicly accessible.
