Lawyers slam CFTC's "mindboggling" probe of EFS market it helped set up

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Sharon Brown-Hruska, Nera

Sometime around the turn of the year, the US Commodity Futures Trading Commission (CFTC) quietly started investigating the exchange of futures for swaps (EFS) market – in which over-the-counter swaps are executed bilaterally before being converted into cleared energy or metal futures contracts. A series of ‘special call’ notices were sent to major dealers, asking for information on trades dating back to at least the start of 2012, and – as a side-effect – baffling the recipients.

The notices con