As we had previously covered in the news, the CME had sued the CFTC over a CFTC “rule” (or interpretation) that would have allowed market participants to select the SDR to which they wished their trade data to be reported without regard to where their trades were cleared. Following the brining of that lawsuit, the CFTC had, without explanation, withdrawn the interpretation in question and also sought comment on a CME Rule that would effectively have allowed the CME to require that trades cleared on the CME be reported to the SDR owned by the CME. Presumably, the withdrawal of the lawsuit constitutes the explanation of the CFTC’s conduct.
