Aug 1 (Reuters) - CME Group Inc, the world's biggest
futures exchange operator, is closely watching regulators'
escalating scrutiny of Wall Street's commodity trading and could
benefit if it resulted in increased futures trading, top
officials said Thursday.
Critics have charged that brokers' trading and stockpiling
of metals and other commodities have led to higher prices for
consumers, and the Federal Reserve is reviewing its decade-old
decision to allow banks to trade physical commodities.
Such scrutiny is "potentially a net positive for us," CME
Group Executive Chairman Terrence Duffy told analysts on a
quarterly conference call. "What they have said is that they are
going to use other derivatives products such as futures and
others to get the exposure to the market versus what they used
to use in the cash market."
Duffy's comment came in response to a question from an
analyst at Goldman Sachs Group Inc, which on Wednesday
moved to defuse criticism of broker's trading in raw materials
by throwing open its metal warehouse doors, offering to
immediately swap aluminum for any end-users holding metal at its
Metro International warehouses.
(Reporting by Ann Saphir; Editing by Gerald E. McCormick)