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We're back here live on the floor of the New York Mercantile Exchange continuing our broadcast -- are great chance to talk about energy prices and the.
Memorial Day weekend historic park featured guest in our accident and -- -- -- Craig Donohue he's the chief of all of them have been CME group which is the the parent of -- York mercantile exchange.
Craig great being a -- you join us here on the floor pleasure a first and foremost let's start with the news of the day those -- traders and their firm that you were charged.
By the commodity -- I'm commission.
The oil market just your response to that and just your work perhaps the -- and -- Well obviously we could work well with the CDC and we certainly support all at press time.
Deal with the potential manipulation events or you know speculation type issues in the market.
Case in particular.
And not seeing is that you know obviously the CFTC has got a good job as part of their efforts to make sure that it you know and I happened -- -- -- in the market.
You know you used to -- up.
Little -- there manipulation and speculation -- words -- -- the could have different definitions to betting on who you talk she's received some of the traders down here.
On the floor I would think going back -- 2000 statements like we saw on energy prices and now here we have it again to some extent.
Can we expect more action review to try to -- either manipulation and or speculation.
-- very happy that -- asked that question because of course is a fundamental difference between manipulation which is prohibited.
-- speculation which is a valuable activity that contributes to liquidity and hedging and risk transfer and so that's a very important distinction.
That needs to be made we constantly.
Monitor our markets and work very closely with not only the CFTC -- other regulators as well.
To -- my -- margin requirements again example.
Well margin requirements are really intended to make sure that we have.
The ability to protect all participants in the clearinghouse because -- the guarantor to every buyer and every seller so margin requirements are really not sat.
To include trading behavior or prices in the market.
Expedia people who think that you're mr.
I killed dean so -- -- won't keep you well but.
I wanted to focus on also the Justice Department task force that it's put together to look into.
Potential fraud speculation and manipulation whatever happened whatever you want to call it what contacts if you had if any with that have north.
Well at Iowa I wouldn't comment on that but you know again obviously you know that's a self -- later we would always work very closely.
And collaborative -- when called upon with government on issues like manipulation or you know speculation.
I just want to comment briefly on the silver margin issue though which is that.
-- we set margins on the basis a number of different sort of volatility measures and so you've had.
You know significant increases to nearly 50% volatility in silver nearly 40%.
Roil markets during the time that we were raising margins and again.
You know we want to make sure that we can cover you know 99%.
Right price moves in -- market in order to be the guarantor.
-- every buyer and seller.
I want to ask you real quick before we wrap up right about all the exchange consolidation of course in New York Stock Exchange what's gonna happen there which of course -- Whatever ends up happening.
Did in that that game right we expect you this -- any chance you'll be back in it and how do you view the competitive landscape given what else has gone.
Well we've really sad that we're not likely to see major mergers and acquisitions activity -- CME group were really excited about.
Our core business growth potential we are globalizing we see much higher birth rates in.
He NEA Asia Pacific electronic trading hours -- focused on extending ourselves into.
The index services area -- our acquisition of Dow -- well listen to.
OTC clearing so that's our focus right now we're always gonna be opportunistic but Anthony is probably not really in our sites we got.
Greg thank you so much and thank you -- certainly here here yeah you got a busy day medical we should do aren't coming right.
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