June 8, 2015

CFTC Releases Rule Enforcement Review of the Minneapolis Grain Exchange, Inc.

Washington, DC – The Commodity Futures Trading Commission’s Division of Market Oversight (Division) issued the results of a rule enforcement review of the Minneapolis Grain Exchange, Inc. (MGEX).

The Division evaluated MGEX’s compliance with Designated Contract Market (DCM) Core Principles 2 (Compliance With Rules), 4 (Prevention of Market Disruption), and 5 (Position Limitations or Accountability) and Commission regulations related to an exchange’s market surveillance program. The review covered a one-year target period.

The Division found the MGEX’s market surveillance program to be in compliance with the assessed DCM core principles and Commission regulations. The Division made two recommendations for improvement. Specifically, the Division recommended that MGEX should consider adopting a hedge exemption application process in the Exchange’s rulebook for the Hard Red Spring Wheat futures contract. The Division also recommended that the Exchange take appropriate measures to ensure that all market surveillance investigations are well-documented.

Copies of the report are available from the Commission’s Office of Public Affairs, Three Lafayette Centre, 1155 21^st Street N.W., Washington, DC 20581, 202-418-5080, or by accessing the Commission’s website at www.cftc.gov.

Last Updated: June 8, 2015