A Wall Street-backed startup that’s planning to challenge CME Group Inc. by offering futures tied to government debt is facing a longer-than-expected approval process as its regulator asks for more details on certain aspects of its business.
The Electronic Liquidity Exchange, or ELX, had been on track for approval this week, according to a notice posted on the Commodity Futures Trading Commission’s Web site. Its application has since been removed from that “fast track,” giving the CFTC until May 27 to review the proposal, a CFTC spokesman said.
ELX CEO Neal Wolkoff wasn’t available to comment, and a spokesman for the exchange had no comment.
The company first announced its intention to challenge CME in December 2007, but many of the company’s founders — which include Citigroup Inc. and J. P. Morgan Chase & Co. as well as Chicago-based traders Peak6, Getco and Citadel Investment Group — have been hit by recent equities market turmoil.
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