Delays and revisions for CME's credit event futures

The CME announced in October 2006 it would launch the product, which pays out a fixed amount after a credit event, in the first quarter of this year. But the Commodity Futures Trading Commission (CFTC) has now asked twice for more time to review the product.

The CME said yesterday it would alter the product's payout terms - it will now pay out only in the event of bankruptcy, and not in the event of less serious credit events such as restructuring. The amendment was ordered by the CFTC, the exchange said.

The product also came under legal challenge last month, when the rival Chicago Board Options Exchange (CBOE) argued to regulators that CME did not have the legal right to trade securities.

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