recent posts

O’Malia Urges Regulators to “Do No Harm”

In a keynote address last week at the Federal Reserve Bank of New York, CFTC Commissioner Scott O’Malia issued a stern warning to financial regulators in the United States and abroad that market fragmentation could have grave consequences on the world financial system. Borrowing a line from the principles that guide medical ethics, O’Malia urged regulators to “Do no harm” in enacting regulations. “Where...

CFTC Delays Enforcement of Reporting for Cleared S...

The CFTC’s Division of Market Oversight this week granted no-action relief from certain requirements applicable to swap dealers and major swap participants regarding the reporting of swap transactions to swap data repositories. The no-action relief, issues June 30, 2014, extends previous no-action relief regarding the reporting of valuation data reporting of cleared swaps. Under section 2(a)(13)(G) of the Commodity...

Congresswoman Urges Review of Bank Guarantees of O...

Maxine Waters, ranking member of the House Financial Services Committee, urged the CFTC this week to begin investigating the offshore actions of Wall Street banks in avoiding certain mandates set forth in the Dodd-Frank Act. In a letter to Timothy Massad, the CFTC’s recently-confirmed chairman, Representative Waters criticized the removal by banks of parent guarantees from overseas affiliates, which allows banks...

Senate Confirms Three New CFTC Commissioners

The US Senate Monday voted to approve the nomination of three new commissioners to the CFTC, including Timothy Massad, who will replace Gary Gensler as CFTC chairman. Mr. Massad had served from 2011 to October 2013 as the Assistant Secretary for Financial Stability at the Treasury Department and has overseen the Troubled Asset Relief Program created in response to the 2008 US financial crisis. In addition, the...

CFTC Announces First Whistleblower Award

The CFTC announced last week its first award under the whistleblower award program initiated pursuant to the Dodd-Frank Act. Under the program, eligible whistleblowers are entitled to a financial award where original information provided leads to a successful enforcement action and the collection of at least $1 million. Whistleblowers who file successful claims are also entitled to job security and...

TeraExchange Announces First Bitcoin Derivative

TeraExchange has recently announced that it has created a swap involving the average exchange rate of bitcoin and plans to list it on its Swap Execution Facility. This bitcoin derivative was created on behalf of two clients as a bilateral swap, and while neither party has acted upon the agreement, they are expected to soon, according to Reuters. This agreement marks the first time a bitcoin derivative will be traded, and...

CFTC Public Utilities No-Action Letter Is Welcome ...

The Commodity Futures Trading Commission (CFTC) released a no-action letter recently, offering relief to public utilities that were having trouble finding market participants willing to work with them for hedging purposes. The public utilities no-action letter should clear up an issue with the definition of the word “swap dealer” that has been negatively affecting public utilities since 2012. Under normal...

CFTC Struggling to Utilize Current Swap Market Dat...

After a year of swap data reporting, the Commodity Futures Trading Commission (CFTC) is yet to be able to make any sort of headway on the swap market data it has been collecting, leaving the nearly $700 trillion dollar industry no safer than it was before the 2008 financial crisis. Among a list of reasons for this given by CFTC Commissioner Scott O’Malia during an event, O’Malia mentioned inconsistent reporting and...

CFTC Criticized Over Suspending Outside Research B...

The Commodity Futures Trading Commission’s internal regulator has determined that the CFTC may have been in violation of a federal law that requires the Commission to maintain a research program after suspending outside research from being published. The claim comes from the CFTC’s reaction to a complaint filed by CME Group back in December 2012. According to CME Group, the Commission was illegally allowing outside...

CFTC Extends Overseas Trade Rules Deadline

The Commodity Futures Trading Commission issued a no-action letter on Friday stating that the Commission will be extending its overseas trading rules deadline, giving overseas traders more time to comply with the CFTC’s rules. The CFTC and European regulators came to an agreement in February over how both regulators would handle overseas trading rules, where the CFTC agreed to allow US traders to use overseas trading...

Regulators to Blame for OTC Market Split, Accordin...

While at the Futures Industry Association’s annual meeting last week, CFTC commissioner Scott O’Malia says that any split between foreign and US traders  in the OTC market is unwanted, and if a split has happened, then it should be blamed on regulators. In a study done by the ISDA, Cross-Border Fragmentation of Global OTC Derivatives: An Empirical Analysis, it was found that the trade volume between Europe and...

CFTC Seeks Clarity in Swaps-Data Reporting

The Commodity Futures Trading Commission (CFTC) is looking to over-haul the way in which swaps-data reporting is done in an attempt to better make use of the information it receives. The CFTC has released a request for comment on around 70 questions regarding swaps-data reporting and how to use the data it collects from companies like Depository Trust & Clearing Corp. and CME Group Inc. Both the CFTC and the SEC were...

CFTC Investigating Preferential Treatment of High ...

The Commodity Futures Trading Commission (CFTC) is looking into deals given to high speed trading firms by exchange operators. The investigation is based on concerns that high speed trading firms are receiving incentives and discounts in the market that other investors don’t normally have access too. Without these discounts, regulators are worried that less-influential investors are at an unfair disadvantage. High...

European Traders Seek Delay in Overseas Trading Re...

The Commodity Futures Trading Commission may be delaying overseas trading restrictions that are set to go into effect next week. European Traders are claiming that they need more time to comply, ensuring that overseas trading will be able to continue. In an attempt to ease tension with European regulators, the CFTC will hold off on instituting several rules it has created in regards to overseas trading, allowing Europe...

Commissioners Unhappy With CFTC No-Action Letters

Several commissioners have spoken out over the CFTC’s no-action letters, claiming that many of them were instituted hastily, leaving little time to review or edit them. The Commodity Futures Trading Commission has put in place almost 70 rules since the 2010 regulatory reform law was put into place. Of these rules, 36 were related to Dodd-Frank. However, within these 36 rules, over 200 no-action letters or other forms...

Commissioner Chilton to Leave CFTC Next Week

CFTC Commissioner Bart Chilton has announced that he will be leaving the Commodity Futures Trading Commission by the end of next week. Chilton, who had said he would be leaving the CFTC in November, has stated that he will step down from the Commission by March 22nd. Though he announced his departure months ago, Chilton had decided to stay on for a little longer than planned, most likely to serve as an extra hand at the...

Judge OK’s DTCC CFTC Lawsuit

A US federal judge has ruled that part of a lawsuit filed by Depository Trust & Clearing Corp (DTCC) against the Commodity Futures Trading Commission (CFTC) will be allowed to proceed. The DTCC CFTC lawsuit was filed by the DTCC over the how the CFTC allowed CME Group Inc and IntercontinentalExchange to gather market data. The DTCC had actually filed 4 claims against the CFTC in the lawsuit. However, US District...

CFTC and FERC Reach Data Sharing Agreement Through...

The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission have released a “Memorandum of Understanding” (MOU) detailing their agreement to share market data between one another. The MOU was put in place in early January, and the CFTC and FERC began more freely transmitting market data to one another just last week. As it turns out, getting the two regulators to share market data has been a...

CFTC Chairman Nominee Timothy Massad Likely to Be ...

It looks as though CFTC chairman nominee Timothy Massad will be approved by the Senate, after dispelling any doubt about his commitment and experience at a hearing in Washington yesterday. The Senate was initially unsure about President Obama’s choice in replacement for Gary Gensler, based on a lack of experience in many of the areas the CFTC regulates. However, after discussing his relevant experience and vowing to...

Senate Questions New CFTC Nominees

The three CFTC nominees waiting for approval to join the Commodity Futures Trading Commission are now facing some questions at a Washington approval hearing from the Senate over how much they will be willing to enforce the rules put in place by the Dodd-Frank Act. Among the nominees is President Obama’s choice for CFTC chairman, Timothy Massad. Drawing skepticism from the senate, some are worried that Massad doesn’t...

Swaps Market Reform Has Little Effect on Trading P...

It’s been two weeks since the swaps market reform has forced banks and traders onto SEFs, and so far little has changed. After making large scale changes to the swaps market in an attempt to increase transparency and competition within the market, it seems banks and other traders are still  mostly trading amongst themselves. It was hoped that this swaps market reform would help promote trading between these two...

Obama Pushing for CFTC Budget Increase

President Obama has stated that he will be pushing for a CFTC budget increase to $280 million dollars this year. While this will be a sizable increase to the CFTC budget, up 30 percent from the current $215 million, this new budget increase falls short from last year’s request of $315 million. Though this is $35 million short of what the CFTC was looking for, it seems that anything at all will be welcome relief to the...

CFTC EC SEF Agreement May Not Help Liquidity Issue...

Earlier this month, the Commodity Futures Trading Commission announced that it would allow US persons to trade on European multilateral trading facilities without the MTFs having to register as swap execution facilities (SEFs) in an attempt to ease concerns over liquidity within the market. However, platform operators seem to think that this new CFTC EC SEF agreement may not do much at all to keep liquidity between...

European Benchmark Legislation May Harm Banks’ Der...

While the European benchmark legislation was designed to add clarity to the marketplace after the LIBOR scandal, it may wind up causing European banks to drop derivatives positions. Under the European Parliament Economic and Monetary Affairs Committee’s revised European benchmark legislation, EU based institutions will be forbidden from holding any products linked to unauthorized benchmarks. Banks are finding this to...

US CCPs Feeling Confident over EC Approval

US central counter parties (CCPs) seem to be gaining confidence that the European Commission (EC) will overlook differences in their clearing house rules, preventing US CCPs from losing European clients. The rules set out by the European Market Infrastructure Regulation (Emir) vary from those followed by US CCPs. While EMIR requires  a minimum holding period for futures margining in Europe to be two days, its only one...

US Swap Activity Slows as Mandatory SEF Trading Be...

US swaps trading practically came to a halt on the first day of mandatory SEF trading. This Tuesday (February 18th) marked the first day that trades had to be executed through SEFs in the US. And it seems that traders aren’t quite ready to jump on board. A total of 143 swaps were executed on Tuesday for a notional value of $14.6 billion. This trade count is about 81% down from the most recent pre-mandatory SEF trading...

Diminished Transaction Tax Plan Closer to Reality

The transaction tax plan, though scaled back from its original conception, is inching ever closer to a reality. After a meeting this morning, it seems the transaction tax plan, which failed to gain widespread acceptance at first, has received backing from 11 euro zone countries– though this acceptance could perhaps be seen as begrudging in some cases. The plan will require some major tweaking before implementation....

Democrats Support New Change to Volcker Rule

The Volcker rule may be getting tweaked once again. The banking industry has been pushing to have a group of debt investments omitted from the Volcker rule, saying that they differ from the types of investments that the Volcker rule was designed to regulate. And it seems likely that they may be getting their way as House officials recently signed a letter looking for guidance from financial regulators on how to go about...

CFTC and EU Work Out Cross-Border Trading Agreemen...

The Commodity Futures Trading Commission (CFTC) and the European Union (EU) have been butting heads over how to jointly regulate international swap trades for some time now. But after meeting yesterday, it seems the two regulators have finally worked out a cross-border trading agreement. The CFTC and the EU have agreed to allow US firms to trade over European platforms, rather than forcing them to be traded through US...

CFTC Sets its Sights on High Frequency Trading

The Commodity Futures Trading Commission (CFTC) is beginning to look into regulating high frequency trading over the coming months. High frequency traders rely on computer software to make trades in only fractions of a second. However, there have been instances where glitches have hurt the market, and the CFTC has decided that many of its regulations are in need of an update. Having issued a report on high frequency...

CFTC Issues 3 Month No-Action Letter for Package S...

The Commodity Futures Trading Commission (CFTC) has issued a no action letter in regards to package swap deals, giving both the CFTC and traders another 3 months to decide on how to properly monitor package swaps on SEFs. Without the no-action letter, any traders participating in package swap trading would have to report any package swap that includes swaps subject to the made-available-to-trade (MAT) ruling to SEFs by...

EU Anticipates Issues with New European Derivative...

The EU is set to implement new European derivatives rules this Wednesday in an attempt to begin bringing more transparency to the $700 trillion dollar market that has been blamed for being a major factor in the 2008 financial crisis. While the EU has been working towards creating these new European derivative rules since the crisis, it seems likely that it will still be quite some time before any real results are...

Blythe Masters Joins CFTC Advisory Committee

JP Morgan’s commodities chief, Blythe Masters, is now a member of a CFTC advisory committee, according to an announcement made yesterday by the Commodity Futures Trading Commission. Masters has been working in the swaps industry for well over a decade, and helped JP Morgan begin using credit default swaps to hedge bank risks. She will be taking part in a discussion the CFTC advisory committee will be having next week...

US an EU Close to Deal on Cross-Border Derivatives...

The US and European Union have been working on an agreement over cross-border derivatives rules for a while now, and are finally closing in on a deal, according to Bloomberg. The agreement will relieve EU trading platforms from being affected by US derivative trading rules, at least for the time being. The deal is being handled by the Commodity Futures Trading Commission (CFTC) and European Union officials, and while it...

Credit Derivatives Overhaul to be Postponed

The implementation of a new set of rules affecting the $21 trillion dollar credit derivative market will be delayed until September, according to the International Swaps and Derivatives Association (ISDA). The rules will be addressing flaws in the credit derivatives market that were exposed during the financial crisis of 2008. Among the changes, the list of what triggers payouts will be expanded to include bail ins-...

EU Warns Businesses to Brace Themselves for Swap R...

The deadline for European countries to begin reporting swaps trading is quickly approaching, even though many businesses may not be ready for large scale swap reform. Beginning on February 12th, derivative transactions made by businesses in the EU will have to be reported to data banks known as trade repositories. This will be one of the EU’s first steps toward swap reform geared toward preventing a financial crisis...

EU and CFTC to Work Together on Cross-Border Regul...

The EU and the CFTC have announced that they will be working together in their implementation of cross-border regulation, after talks in Washington. The regulators have been piecing together new laws in the hopes of preventing a similar financial crisis to the one in 2008, which had significant negative effects on both country’s economies. The EU and the CFTC have agreed to “minimize the divergence on margin...

French Banking Lobbyists Criticize European Union’...

The European Union’s plan to quell big banks’ proprietary trading has been met with criticism from French banking lobbyists who say it will give an advantage to US banks, which would not be affected by the new rules. Interestingly, the rules the European Union has agreed upon are already less severe than their initial plans to actually break up large banks, which were deemed “to big to fail” after the fall of...

CFTC Certifies TrueEX and Tradeweb MAT Submissions

The Commodity Futures Trading Commission has announced that both TrueEX and Tradeweb MAT Submissions, or made available to trade submissions, have been certified by the CFTC’s Division of Market Oversight. The certification means that certain swaps handled by both TrueEx and Tradeweb will now fall under the trade execution mandate, and will now have to be traded over swap execution facilities (SEFs). This makes three...

Reuters to Set Swaps Rates during ICAP Investigati...

According to Bloomberg, Thomson Reuters Corp. will be setting benchmarks for US swap trading rates during the ICAP investigation. Being performed by the International Swaps & Derivatives Association (ISDA), the regulator will be looking into whether or not the banks had manipulated the way ICAP set its benchmark rates. Before the ISDA can move forward with the ICAP investigation, they must phase it out of its current...

CFTC Looks to Address Swap Report Data Issues Affe...

According to the Wall Street Journal, the Commodity Futures Trading Commission is beginning to make changes to fix swap report data issues that have made it difficult to facilitate market transparency. The CFTC will be putting together a group to review its swap report data collection process, as well as ensure that banks and other financial institutions are reporting and keeping records that are on par with the rules...

UK Challenge to Short-Selling Law Dismissed by EU ...

According to Reuters, the UK’s attempt to challenge a short-selling law that bans the ability to short-sell shares during market emergencies has been denied by a European Union Court. Attempting to limit the reach of financial rules designed to regulate the industry, the UK had challenged a part of the short-selling law that grants the European Securities and Markets Authority (ESMA) power to ban betting on falling...

Senate Planning to Elect Timothy Massad as CFTC Ch...

According to the Wall Street Journal, the Senate seems likely to vote the current nominee for chairman of the Commodity Futures Trading Commission, Timothy Massad, into the position sometime next month. Former CFTC chairman Gary Gensler stepped down earlier this month; Timothy Massad has been nominated to take over for the current interim Commissioner, Mark Wetjen. While this clears up a bit of the uncertainty around the...

IVSC and Global Regulators Begin to Create Valuati...

According to Reuters, global regulators, including the International Valuation Standards Council (IVSC), have begun to plan the first worldwide standard for valuing some of the more difficult-to-price assets held by banks. The first task of the IVSC, it seems, will be developing a benchmark by which to base this valuation. There is currently little to no guidance on how to price an asset contained within a company’s...

EU Official Calls for Strong Financial Transaction...

According to Reuters, the EU’s chief tax official is calling on countries within the Union to implement a strong financial transaction tax, rather than watering it down with various exemptions. The official suggests implementing the rules on a more gradual scale instead. The EU official, Algirdas Semeta, feels that a deal for regulating financial transaction taxes could be ready to go within the first half of this...

CFTC Announces Trade Execution Mandate on Certain ...

According to CFTC.gov, the Commodity Futures Trading Commission’s Department of Market Oversight has announced that trading platform Javelin SEF, LLC’s self-certification of available-to-trade  determinations (MAT determinations) on several types of interest rate swaps, has been deemed certified. In accordance with CFTC regulation,  swaps that are subject to MAT determinations, whether listed by Javelin or any...

EU Agrees on Market Rule Overhaul

According to Bloomberg, the European Union has successfully come to an agreement on a market rule overhaul that will tighten measures to regulate the derivatives market, slowing down high frequency trading and curbing speculation in commodity derivatives. The market rule overhaul will push more activity onto regulated platforms in hopes of eliminating some of the risk involved with derivatives trading, which have been...

Federal Agencies Allow Interim Collateralized Debt...

According to CFTC.gov, five federal agencies have approved an interim rule that will allow banks to keep certain securities, namely collateralized debt obligations, which are backed by trust preferred securities (TruPS CDOs). The temporary rule has been put in effect to lighten the impact of the Volcker rule, which put strict limits on banks’ proprietary trading abilities in an attempt to lower the risk associated with...

Federal Reserve to Discuss New Physical Commodity ...

According to Reuters, the Federal Reserve is setting up to take public comments on new physical commodity rules that will limit banks’ ability to trade certain commodities this week. This marks the Federal Reserve’s first steps in what will most likely be a long road ahead for reforming physical commodity rules. The driving force behind this reform comes from public and political complaints over the risk involved...

CFTC May Push Interest-Rate and Credit Swaps onto ...

According to Bloomberg, the Commodity Futures Trading Commission (CFTC) is set to push interest-rate and credit swaps onto SEFs in the near future. While the CFTC is currently reviewing the plans, they haven’t found any reason to object to them as of yet. And with the first of these new requirements being instituted on January 16th, it seems unlikely that they will find one. Addinginterest-rate and credit swaps to the...

EU Proposal Drafted, Offers leniency for Banks

According to Reuters, Banks in the European Union are going to see limits on proprietary trading, based on a draft of an EU proposal. The EU is drafting a proposal in an attempt to curb the risky trading done by banks that has been considered to be a major factor in the 2008 financial crisis. However, it seems their attempt to tame the $59 trillion dollar market isn’t enough for some, with experts considering it to be...

Singapore Exchange Granted Clearing Certification ...

According to the Financial Times, US regulators will now allow the Singapore Exchange to clear over-the-counter derivatives trades for American customers. This makes the Singapore Exchange the first Asian exchange to be granted this certification. After the 2008 finical crises, the US passed the Dodd-Frank Act in order to help police the derivatives market, which is often cited as a major cause of the crisis. One of the...

EU Reaches Agreement on New Financial Regulations

According to Reuters, after months of discussions and arguments, the EU has finally begun to come together over how it plans to regulate the swaps industry. After agreeing to work with the US over working out global standards to police the $600 trillion dollar derivatives industry, which is thought to have played a major role in the financial crisis of 2008, the EU has fallen behind the US’s Commodity Futures Trading...

CFTC Considers Taking its Derivatives Trading Rule...

According to the Wall Street Journal, the Commodity Futures Trading Commission may be looking to force the derivatives trading rules the Commission has implemented in the US onto foreign markets. The CFTC had agreed to delay the deadline for foreign markets to comply to US trading rules while the European Commission and other foreign regulators came up with their own derivatives trading rules in hopes that they could all...

Wetjen to be Temporary CFTC Chairman

As the year comes to an end, so will the term for current Commodity Futures Trading Commission chairman Gary Gensler, according to Bloomberg, commissioner Mark P. Wetjen will be temporarily taking his place. Though Obama has nominated Timothy Massad to take the position, the Senate is yet to hold a hearing to vote on the matter. In the meantime, the commissioners will vote fellow commissioner Wetjen into the position on...

Segmented Derivative Regulation to Create “Chaos” ...

According to Reuters, a lack of congruency between US and EU over how to police the $640 trillion dollar derivative market is causing frustration within Asian Pacific markets, and could lead to serious and expensive consequences. While reaching an agreed upon solution for derivative regulation is on everyone’s to do list, one of the major difficulties seems to be with how quickly the US decided to begin implementing...

Volcker Rule Approved by Regulators

According to the Wall Street Journal, the Federal Deposit Insurance Corp., Federal Reserve Board, Securities and Exchange Commission, and Commodity Futures Trading Commission have all voted to approve the infamous Volcker Rule. While the vote for Volcker Rule approval was unanimous for the FDIC and the Federal Reserve, the CFTC approved it by 3-1, while the SEC approved it by a slightly narrower 3-2. The Volcker Rule,...

Commissioner O’Malia on the CFTC: More Technology,...

According to Automatedtrader.net, the Commodity Futures Trading Commission’s Scott O’Malia is hoping to see some changes to the CFTC over the next year. O’Malia has been rather vocal in his disagreement with many of the CFTC’s moves recently, feeling that the Commission was acting overly aggressive in its rulemaking process, going as far as to call its recent attempts at cross-border trading regulation...

Big Banks Look to Reverse New CFTC Rules

According to the New York Post, several of the US’s largest banks plan to sue the Commodity Futures Trading Commission (CFTC) over some of the new rules it has been implementing. The banks are looking to get many of the new rules reversed through the law suit, citing that the CFTC violated rulemaking procedures while implementing them. They claim that the CFTC rushed many of the laws, passing them before the banks were...

SEF Rules Are Trouble for Asian Derivatives Market...

According to Reuters, many Asian and U.S. banks are looking for ways around new rules implemented by the Commodity Futures Trading Commission and other regulators. Some fear their maneuvers may lead to liquidity shortages within the market. While regulators are trying to round up all derivatives trading onto new Swap Execution Facilities (SEFs), a mere 10 to 20 percent of Asia’s turnover in currency and interest rate...

CFTC Charges Principal Trading Organization for “B...

According to CFTC.gov, the Commodity Futures Trading Commission has filed a civil enforcement action against principal trading organization for both ”banging the close” and “spoofing” the IDEX USD Three-Month Interest Rate Swap Futures Contract. In order to manipulate the value of the three month contract, the CFTC claims that the principal trading organization “banged the close” during the fifteen minute...

Treasury Bond Rule will be Costly for Clearinghous...

According to Businessweek, the Commodity Futures Trading Commission will be voting today on a new rule that will result in Treasury collateral being subject to a “prearranged and highly reliable funding arrangement.” Should the rule be passed, clearinghouses will be forced to back Treasury bonds with credit lines. The rule, according to experts, could cause liquidity facility costs to double. The steep rise in...

CFTC Chairman Nominee Timothy Massad Met With Skep...

According to Bloomberg, President Obama’s nominee for the next chairman to the Commodity Futures Trading Commission is being met with skepticism by some members of the Senate. Pending approval from the Senate, Timothy Massad, a Treasury Official, will be taking over for current CFTC chairman Gary Gensler. Many in the Senate feel that Massad has some very big shoes to fill, and some are unsure if he will be able to do...

SEF registration rule to slow multi-dealer trading...

According to Traders Magazine, SEF registration rules may hinder movement towards multi-dealer platforms by forex traders. The SEF registration rule, instituted by the US’s Commodity Futures Trading Commission requires all multi-dealer platforms to register as swap execution facilities. This may slow the growth of multi-dealer platforms, and, as found in a report by industry consultancy Greenwich Associates, may even...

White House Announces Nominee for CFTC Chairman

According to the Financial Times, the White House plans to nominate Timothy Massad for chairman of the Commodity Futures Trading Commission (CFTC).  Massad, a US treasury official, will be taking the place of current CFTC chairman Gary Gensler, who will be stepping down towards the end of the year. How Massad plans to run the CFTC is still very much unknown, but the replacement of Gensler will most likely come as a...

EU’s Antitrust Probe Delayed Due to Banks’ Request...

According to Bloomberg, the EU’s antitrust probe will see delays now that the banks involved with the case have successfully fought for the ability to see the confidential information the Commission has gathered on the banks. The information is vital to fighting the antitrust complaint that was filed by the EU back in July. This actually marks the second time sensitive data issues have delayed the EU’s antitrust...

US Options Exchange Leaders Close to Reaching Erro...

According to The Wall Street Journal, US Options Exchange leaders have stated that they are close to instituting universal rules for erroneous trades. While they mentioned that there are still a few discrepancies between the 12 U.S. options exchanges, exchange leaders stated at the Futures Industry Association’s Futures & Options Expo that they were confident in coming to an agreement as early as next week. The...

CFTC Chairman refuses to budge on Cross Border SEF...

According to IFR, CFTC Chairman Gary Gensler reiterated his stance on cross border SEF regulation during a keynote address at the Futures Industry Association’s 2013 Expo in Chicago. There has been an outpouring of international debate over cross border SEF regulation since the implementation of SEFs in October. While the Dodd-Frank Act was put in place as a means to only regulate US markets, it seems trading isn’t...

Banks and Regulators Call on ISDA to Alter Derivat...

According to Reuters, U.S. Federal Deposit Insurance Corporation Chairman Martin Gruenberg and Bank of England Governor Mark Carney are calling on the International Swaps and Derivatives Association (ISDA) to change some of the rules behind derivative trading. This is in hopes of creating a safer market place. Specifically, the two are looking to add what they are calling a “short delay” in closing contracts for...

MSRB’s plans for Data dissemination has Deal...

According to The Bond Buyer, several dealer groups have spoken to the Municipal Securities Rulemaking Board (MSRB) over data dissemination, warning that disclosing certain information to retail dealers may actually hurt the secondary market. These warnings have sprung from the MSRB reaching out to dealer groups like the Securities Industry and Financial Market Association and the Bond Dealers of America for feedback on...

Federal Reserve Liquidity Rules Put the Squeeze on...

According to Business Week, the Federal Reserve liquidity coverage ratio proposal was approved earlier today. The rule, which affects banks with over a quarter of a trillion dollars in assets the most, will take the approved international rules a few steps further. Putting a quantitative liquidity requirement in place, the Federal Reserve liquidity rule will mandate that banks must set aside close to two trillion dollars...

Banks contest new leverage limit rule.

According to Bloomberg.com, many of the United States’ largest banks aren’t happy with a recently proposed rule to increase the minimum capital a bank needs to hold against potential losses. Banks are saying the new minimum– 5 percent for holding banks and 6 percent for their actual banking components– are arbitrary and harmful, claiming that the rule will worsen an already uneven playing field. The...

Confusion over CFTC’s “US Person” Definition Cause...

According to the Financial Times, foreign fund managers may begin to minimize their business with the US. Due to the CFTC’s new definition of what constitutes a “US person,” fund managers in Europe and Asia who have a principal base of business within the US will now have to conform to the CFTC’s new regulations. Fund managers who fall under this new definition will now be required to raise their margin...

CFTC struggles to get back to work as the governme...

According to Politico, though the Commodity Futures and Trading Commission (CFTC) is open again, it may still have trouble getting its employees back to work. The CFTC is notoriously underfunded. The agency is in fact only slightly larger than it was 20 years ago, before taking on the swaps market and increasing their responsibility by tenfold—not including the massive growth in futures trading on top of that. And it...

SEC Chair discusses refining company disclosure re...

SEC Chair Mary Jo White spoke about the SEC and its disclosure policies at a leadership conference in National Harbor, Md. The Securities and Exchange Commission posted the transcript on their website SEC.gov. During her speech White talked about the need for disclosure, stating that without it, investors would be unable to make informed decisions, and could unwittingly be putting themselves at risk. Among the...

Debt Ceiling to Impact Global Economy, Regardless ...

As the U.S. government shutdown continues with little progress being made towards reaching any sort of consensus between Democrats and Republicans, the U.S. is coming closer and closer to defaulting on its loans. And, according to the Huffington Post, experts are saying that even the threat of a default may cause panic in the market place. The government shutdown, which started over the House’s inability to come to an...

The SEC CEO Payment-Ratio Rule comes under heavy s...

According to Bloomberglaw.com, the Securities Exchange Commission (SEC) implemented an interesting new rule in September that requires public companies to disclose the ratio of their CEO pay to median worker compensation. And many seem less than pleased about it. With this new rule, all public companies will have to disclose to the SEC the median total compensation of all employees aside from the CEO, the compensation of...

CFTC’s Scott O’Malia discusses automated trading r...

According to The Trade News.com, CFTC’s Scott O’Malia mentioned in a conference held by the Investment Company Institute on Thursday that the Commodity Futures Trading Commission will need to implement the use of more data, as well as focus on high frequency traders (HTFs) as it begins to formulate new automated trading rules. O’Malia feels the use of data will allow the CFTC to understand problems that can occur...

CFTC Commissioner O’Malia pleased with SEF perform...

According to the Wall Street Journal, Commodity Futures Trading Commission’s Scott O’Malia seems content with how the swap execution facilities have been operating since they were instituted. As a means to make the derivative market more transparent due to its role in the financial crisis of 2008, the CFTC had mandated that all trading must be done through what they called swap execution facilities, or SEFs. October...

Government Shutdown Creates Communication Gap betw...

According to bankingtech.com, senior financial industry executives are less than pleased with the US and EU’s inability to work together on the implementation of derivatives reforms and swap execution facilities. While the Dodd-Frank Act was instituted by the US government to help create transparency in the swaps market, often cited as a major cause of the 2008 financial crisis, its effects reach far beyond United...

CFTC Will Deal Steep Penalties to Anyone Found Lyi...

According to Dodd-Frank.com, the Commodity Futures Trading Commission (CFTC) will not hesitate to penalize anyone found lying in an investigation. The CFTC made this very clear during a recent investigation into pre-stamping with an introducing broker. When a commodity futures or options order is being processed, the processor must stamp the order form in the correct time bracket, in order to ensure clarity as to when...

With Lights off in the CFTC, Many Traders Are Left...

According to the Wall Street Journal, the government shutdown may lead to timid commodities and foreign exchange markets.                 With the shutdown causing the furlough of all but 28 of the more than 600 employees within the Commodity Futures Trading Commission (CFTC), the Commission has been unable to produce its normal weekly commitment of traders report. Without the CFTC’s report, the market...

CFTC Skeleton Crew struggles to monitor sefs’...

According to Bloomberg.com, swaps trading is off to a slow start since the implementation of the Commodity Futures Trading Commission’s sefs. In an effort to make the market more transparent, the CFTC mandated that all swaps trading be done through swap execution facilities, a rule that went into effect on October 2nd. While the market isn’t seeing huge volumes right now, it may actually be for the best. With small...

CFTC Chairman Gensler Continues to Refuse to Delay...

According to The Financial Times, Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler is refusing to budge on the deadline for the next phase of trading rules. The next set of rules, which will require the reporting of transactions with offshore entities, will go into effect on October 9th. Many feel these rules will affect trading venues in Europe, regardless of their own country’s...

CFTC Receives Pressure from Farmers to Change Rule

CFTC Receives Pressure from Farmers to Change Rule According to agri-pulse.com, the Commodity Futures Trading Commission (CFTC) has come under some heat recently for a rule they’ve proposed by futures market regulators and traders who feel the proposal may actually harm the agricultural community. The CFTC, which was created in the 70’s to take over for the U.S. Department of Agriculture’s Commodity Exchange...

Swaps Trade Transitioning Smoothly, Despite Govern...

With the exception of a few delays instituted within the past week, the deadline put in place by the Commodity Futures Trading Commission for swaps traders to comply with new regulations has come, and the transition is well underway. As of today, almost all swaps trades are being handled through Swap Execution Facilities, or SEFs. And, according to The Financial Times, some SEFs have already begun announcing their first...

Division of Enforcement Director to step down in O...

According to CFTV.gov, the Commodity Futures Trading Commission has stated that the current Division of Enforcement Director, David Meister, will be stepping down from his position in October. A graduate of the Columbia University School of Law, David Meister was quite prolific during his time as Director, initiating a record number of enforcement actions as well as playing a large factor in creating and implementing...

CFTC allows for a few delays in swap trade initiat...

According to Reuters, the Commodity Futures Trading Commission (CFTC), who has by and large refused to budge on its October 2nd deadline for SEF’s to implement its new rules, will allow for a delay in a few of its initiatives. In an effort to increase transparency and minimize the risk associated with the swap trade market, often blamed as one of the leading factors of the 2008 financial crisis, the CFTC has been...

Gensler’s assessment of the CFTC: A Summary

Chairman of the Commodity Futures Trading Commission (CFTC) Gary Gensler seemed to be overall satisfied with the CFTC’s current progress and future plans as he spoke in front of the International Group of Treasury Associations and the U.S. Chamber of Commerce recently. Beginning his speech, Chairman Gensler recalls the state of the U.S. economy in 2008, putting the majority of the blame for the financial crisis on the...

Uncertainty in CFTC: Successor to Chairman Positio...

As reported by Reuters, there is a potential void looming over the Commodity Futures Trading Commission’s top position as current chairman Gary Gensler ‘s five year term comes to an end. With the U.S. economy still limping through a recovery from the financial crisis of 2008, thought in large part to be due to a lack of regulation on banks and trading, it seems imperative that this position be filled with...

CFTC Ends Five Year Investigation of Silver Market

According to CFTC.gov, the Commodity Futures Trading Commission (CFTC) has closed its investigation on the silver market after five years. While the CFTC normally keeps a tight lid on its investigations, it has decided to announce this finalization publicly due to the amount of time that has passed since the investigation was initiated. The CFTC’s department of enforcement began its investigation of the silver market...

Activists Rally for Financial Speculation Tax

Occupy Wall Street is back, and this time their target is high frequency trading. On the second anniversary of the Occupy Wall Street movement, protesters will be gathering in New York City to demand Congress pass the “Robin Hood Tax.” The Robin Hood Tax, also known as the Financial Speculation (or Transactions) Tax, is an excise tax on the transfer of ownership of certain financial instruments, including bonds,...

CFTC grants temporary registration to SwapEx, LLC,...

The U.S. Commodity Futures Trading Commission (CFTC) has approved the applications of SwapEx LLC, GFI Swaps Exchange LLC, and MarketAxess SEF Corporation for temporary registration as swap execution facilities (SEFs) pursuant to section 5h of the Commodity Exchange Act and section 37.3(c) of the Commission’s regulations. By becoming SEFs, these facilities will be able to offer regulated products, including foreign...

Third Phase of Mandatory Clearing Begins

The third phase of mandatory compliance with clearing requirements for certain Credit Default Swaps and Interest Rate Swaps was implemented on September 9, 2013. The most recent round of implementation will affect third-party investment managers and ERISA pension plans (“Category 3 Entities”), and other entities that were not subject to the Commodity Futures Trading Commission’s Division of Clearing and Risk’s...

CFTC Publishes Concept Release on Risk Controls an...

The U.S. Commodity Futures Trading Commission today published a Concept Release on Risk Controls and System Safeguards for Automated Trading Environments in the Federal Register. The Release is intended to serve as an overview of potential measures that may be able reduce the likelihood and mitigate the impact of market disrupting events. The Release provides a summary of the automated trading environment, discusses...

Obama Puts Pressure on Regulators to Push Dodd-Fra...

President Barack Obama met with Wall St regulators on Monday, August 19th 2013 to discuss the progress made after the 2010 passing of the Dodd-Frank Act. According to The Wall Street Journal, Obama is urging key regulators to implement many sections of the Act in order to avoid any situation similar to the Great Recession. In attendance at this meeting were key players from the Securities and Exchange Commission,...

Top Regulators Meet With Obama On Dodd-Frank Progr...

It was announced on Sunday that President Obama is planning to meet with key regulatory officials Today to discuss the advancement of Dodd-Frank. Representatives from the Treasury, the Consumer Financial Protection Bureau, the Federal Housing Finance Agency, the Commodity Futures Trading Commission, the Securities and Exchange Commission and the National Credit Union Administration will be in attendance. Since being...

Regulatory Giants Discuss Disaster Recovery Relief...

Hurricane Sandy took a physical toll on New York City, but a joint meeting of the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Commodity Futures Trading Commission (CFTC) on the topic of disaster recovery, proved that it’s not just physical damage that companies are worried about. Hurricane Sandy, which touched down in New York City on October 28th and 29th,...

Gensler: CFTC Faces Challenges Implementing Volcke...

On Tuesday July 30th, Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), testified before US Senate Committee that one of the largest issues the CFTC will confront in the coming years is the implementation of the Volcker Rule, which will prohibit all banks from doing proprietary trading. Also in his testimony, Gensler cited the recent progress made with cross-border swaps regulation in addition to...

Fed Re-evaluating Commodities Control Ruling

The Federal Reserve announced that they will be reviewing their rulings regarding Banks trading commodities after receiving complaints. Since the Bank Holdings Act, which is over 50 years old, deposit holding banks have been disallowed from directly holding commodities. But in 2003, the Federal Reserve put in place a provision letting non-commercial banks deal in commodities, but forbade them from dealing in commodities...

FINRA Targeting High Frequency Trading in Probe

The Finance Industry Regulatory Authority (Finra) is looking into how trading firms self-regulate their algorithms used for High Frequency Trading. In response to several high profile anomalies in the trading market due to High Frequency Trading (HFT) in the past year, the Finance Industry Regulatory Authority (Finra) has been looking into several trading firms with how they use and control their trading algorithms. One...

CME Chairman Voices Concerns About Brokerage Colla...

Terrence Duffy, Chairmen of the CME Group, counseled Senators against a pending CFTC ruling regarding collateral set aside by brokerages. Duffy’s presentation before the Senate Committee on Agriculture, Nutrition and Forestry in a hearing to evaluate the CFTC was yesterday, July 17th 2013. In his testimony, Terrence Duffy took aim at a certain pending CFTC ruling requiring all Futures Commission Merchants (FCMs)...

Simulated Wall Street Cybersecurity Attack to Test...

On Thursday, July 18th 2013, the Securities Industry and Financial Markets Association (SIFMA) will be carrying out Quantum Dawn 2, a simulated cybersecurity attack meant to assess preparedness. Since the last cybersecurity simulation in 2011, the list of firms and institutions wishing to be included in this year’s attack has more than doubled, according to the SIFMA brief released today. The organizations...

Guidance and Policy Statement Regulations on Cross...

Following the vote on guidance and regulation on Friday, the Commodities Futures Trading Commission (CFTC) released the manuscript of the guidelines regarding cross border swaps today, July 16th 2013. Cross border swaps have become a hot issue in the CFTC for some time now, but was resolved following last Friday’s vote, which passed the new regulations as well as a 75 day guidance period. As of 6 pm, July 16th...

Christopher Ehrman made Director of Whistleblower ...

Christopher Ehrman, previously an attorney at the Securities and Exchange Commission (SEC) has been named as the new Director of Whistleblower Office at the Commodities Futures Trading Commission (CFTC). The Whistleblower Office was created by a provision in the Dodd Frank Wall Street Reform and Consumer Protection act, which was signed into law almost three years ago by President Obama. The Office was intended to create...

Regulatory Adjustment to New CFTC Ruling on Cross-...

The impacts of the Commodities Futures Trading Commission’s (CFTC) response to cross-border swaps are yet unknown. With a 75 day period of guidance in addition to the implementation of the final ruling, this unprecedented move by the CFTC may deeply impact the market. On Friday, July 12th, the CFTC voted 3-1 in favor of instituting final guidelines for regulating cross-border bilateral swaps. Gary Gensler, in his...

CFTC and European Commission Reach Concordance on ...

The tenuous issue of cross-border derivatives regulation between the United States and the European Union may be over soon, according to a press release from the CFTC today. Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), and European Commission representative Michel Berneir have announced that the two regulatory bodies may have created a ‘common path forward’ for dealing with...

Basel Committee May Rethink Regulatory Complexity

On Monday, the Basel Committee released a discussion paper dealing with the simplicity of the regulatory systems, leading some to take it as a sign that the committee may advocate simpler regulations in the future. In the paper, they discuss several current aspects of regulation such as risk sensitivity, complexity, and international equivalence. Since the financial crisis of 2008, international regulatory bodies have...

CFTC Vote On Cross-Border Swaps Set for Friday

After weeks of speculation, it looks like the Commodity Futures Trading Commission (CFTC) will conclude a foreign regulatory issue this Friday, July 12th. The vote will regard how domestic regulations on swaps apply to foreign firms wishing to do business with those in the United States. The regulations have become a devisive issue in the CFTC , with commissioners on the board giving competing advice on what exactly to...

Basel Committee Reform Capital Rules of Derivative...

On June 28th, The Basel Committee came out with two papers that recommend strengthening the regulatory oversight of counterparty credit swaps to decrease the alleged risk of derivative transactions. The first paper improves upon the interim credit assessment suggestions that the Basel Committee made with the Current Exposure Method (CEM) and the Standardised Method. The new credit risk assessment of counterparties in...

CFTC Brings Charges Against Corzine For MF Global ...

Jon Corzine, the ex-CEO of MF Global, a major derivative broker that went bankrupt in October, 2011, is reportedly being brought up on charges by the CFTC relating to the collapse. On Thursday, June 27th, the CFTC issued a press release stating that they would be bringing charges against Jon Corzine, the former CEO, and Edith O’Brien, Former Assistant Treasurer, in relation to the derivative giant’s...

No-Action Relief for SDs and MSPs Reporting Regula...

The no-action relief issued to Swap Dealers (SDs) and Major Swap Participants (MSPs), originally set to expire on June 30th, has been extended a year. The relief is regarding reporting regulations that were originally put into place on December 17th, 2012.  The Division of Market Oversight (DMO) Acting Chair Richard Shilts published a letter on June 26th, 2013 regarding the no-action time-limited relief they...

Gensler Urges Fast Action on Cross-Border Derivati...

The U.S. Commodity Futures Trading Commission (CFTC) planned to have cross-border derivative guidance finished by July 12th, and on June 25th CFTC Chairman Gary Gensler assured Senators that this deadline would be kept, despite some opposition. Gary Gensler, Chairman of the CFTC, told members of the Senate Appropriations committee that the CFTC would let the extension expire and continue reformation. He also mentioned...

Wetjen Advocates Legal Advice Before Interim Expir...

The Commodity Futures Trading Commission’s interim relief for cross-border swaps is due to expire on July 12th, but in a speech at a London Futures Industry Associated expo, CFTC Commissioner Mark Wetjen made it clear he thinks the CFTC should provide legal advice and assurance until that point. The approach Mark Wetjen advocated for is purportedly to ease the transition into the time after the relief expires....

Elizabeth Warren Chides Commissioners Slowing Cros...

With Gary Gensler’s term expired in April, 2013 and a re-appointment being as soon as July, Elizabeth Warren is decrying commissioners for what she sees as stalling regulation. Certain policies that the Commodity Futures Trading Commission has been working on include a deal with cross-border swaps. One of the policies would require any domestic bank with a foreign branch carrying out more than eight billion dollars of...

CFTC Commissioner Chilton’s Address to Hedge Fund ...

On Tuesday, June 18th 2013, CFTC Commissioner Bart Chilton gave the keynote address in the conference Hedge Fund Industry in 2013, which was held in Chicago, Illinois. In the address, he gives some insight into the working parts behind the Commodities Futures Trading Commission, and why they see some aspects of the financial industry as potential threats to the stability of the market. Chilton, who has been a CFTC...

Gary Gensler’s Term May Be Over in July

The Commodity Futures Trading Commission Chairman Gary Gensler may be replaced as early as July, reports The Financial Times. His term, which began on May 26th 2009, was set to expire in April this year, but until a new Chairman has been appointed by President Obama, Gensler may ride out the term until the end of this year. The other members on the commission, such as Jill Sommers, Bart Chilton, Scott O’Malia, and...

Evaluation By EU of U.S. Credit Swap Rules Delayed

The European Commission has given regulators at the European Securities and Markets Authority more time to analyze United States and Japanese credit swaps. The original deadline for their analysis was June 15th, but ESMA has been given an extension until September 1st to formulate an opinion on third party clearing houses regarding OTC derivatives regulation. Until the robustness of US credit swap policy has been...

U.S. House Passes Bill To Loosen Federal Grip on F...

The U.S. House has passed a bill that will loosen the federal government’s grip over the trading of foreign derivatives. The FX exemption was passed by a bipartisan group of lawmakers on a 301-124 vote. According to Bloomberg, supporters of the bill feel that this exemption is crucial to giving U.S. firms a strong position in the foreign exchange markets. However, opponents feel that regulation systems in outside...

Banks Receive Extension on Risky Swaps Rule

The Wall Street Journal reports that seven banks have received extensions on complying with the rule that would require them to “move risky swap activities into separate affiliates.” The Office of the Comptroller of the Currency granted the two year extensions to Bank of America Corp., J.P. Morgan Chase & Co., Citigroup Inc., Wells Fargo & Co., HSBC Holdings PLC, Morgan Stanley and U.S. Bancorp. The rule,...

ISDA Standardizes Swap Valuations with New CSA

The International Swaps and Derivatives Association (ISDA) has released a new credit support annex (CSA) in an attempt to increase efficiency and improve the standardization in the over-the-counter (OTC) derivatives market. According to the International Finance Review (IFR), the initial CSA that was published by the ISDA in 1994 had an enormous amount of optionality by allowing participants to use a “variety of...

Gensler to Meet With Regulators on International D...

CFTC chairman, Gary Gensler, is set to meet with European financial regulators on June 20th in Montreal, reports The Wall St. Journal. The meeting will be a hurdle for Gensler, who opposes an extension for the delay of U.S. derivative rules taking effect on July 12 on foreign banks and foreign branches of U.S banks. Banks and regulators have called for an extension in order for other countries to set their own swaps...

Stephen O’Connor Leaves Morgan Stanley to Be...

Stephen O’Connor is resigning from his position at Morgan Stanley to join the International Swaps and Derivatives Association, Inc (ISDA) as a full-time Chairman. With this new position, O’Connor will have a more  hands-on approach in driving ISDA’s strategic initiatives. The pace and scope of those initiatives continues to increase given global regulatory reform and the continued evolution of the...

SEC Proposes Money Market Fund Rules

The Securities and Exchange Commission is looking to push through a plan that would aim to prevent another run on money market funds, The Washington Post reports. This comes as a response to the events of 2008, when a major money market fund fell below $1 a share, something which has occurred only three times prior, and prompted a panic. Money-funds had the perception of being as stable as savings accounts by investors,...

CFTC Receives Order From Federal Court To Charge C...

The U.S. Commodity Futures Trading Commission (CFTC) received Federal Court orders to charge three Utah residents from Bentley Equities (Bentley), LLC, over $2.7 million in disgorgement and civil monetary charges for fraudulently soliciting and accepting more than $1.1 million from its customers in relation to commodity futures trading. In May 2012,  Christopher Hales and Eric Richardson were charged for misleading...

Investor Groups Support Dodd-Frank Act Regarding M...

More than 50 investor groups released a statement expressing their disagreement with the lawsuit filed against the Securities and Exchange Commission (SEC) by the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable.  The lawsuit is in regards to the section of the Dodd-Frank act that requires companies to disclose whether they use minerals from the Republic of...

Europe Considering Financial Transaction Tax Scale...

Reuters has reported that participating European countries plan to cut the FTT (financial transaction tax) rate by up to 90% and may have its “full roll-out” delayed. The tax, which is set to target speculative trading, would have its rate reduced from 0.1 percent to 0.01 percent and be applied gradually. If it is put into place, 2014 could see transactions of shares taxed, with bonds and derivatives being taxed...

CFTC Asked to Delay Expiration of Swaps Rules Exem...

The E.U. has asked for a delay in the enforcement of new swaps rules set to take effect on July 12, when the exemptions for overseas banks of the Dodd-Frank Act expire. In a report by Bloomberg.com, the European Commission addressed Gary Gensler, the head of the U.S. Commodity Futures Trading Commission. The EC requested the expiration date of the exemptions to be pushed back in hopes that there would be more time for...

Dodd-Frank Durbin Amendment a Failure

According to Forbes, an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed three years ago this month, has had a significantly negative impact on American consumers. The amendment was proposed and named after Dick Durbin (D-IL) and passed 64-33 with 17 Republican supporters. It called for the control of prices on the interchange fees for debit cards and targeted banks with assets over $10...
recent from Dodd-Frank Congresswoman Urges Review of Bank Guarantees of Offshore Affiliates
Congresswoman Urges Review of Bank Guarantees of Offshore Affiliates Maxine Waters, ranking member of the House Financial Services Committee, urged the CFTC this week to begin investigating the offshore actions of Wall Street banks in avoiding certain mandates set forth in the Dodd-Frank Act. In a letter to Timothy Massad, the CFTC’s recently-confirmed chairman,...
recent from Enforcement Actions Reuters to Set Swaps Rates during ICAP Investigation
Reuters to Set Swaps Rates during ICAP Investigation According to Bloomberg, Thomson Reuters Corp. will be setting benchmarks for US swap trading rates during the ICAP investigation. Being performed by the International Swaps & Derivatives Association (ISDA), the regulator will be looking into whether or not the banks had manipulated the way ICAP set its...
recent from Forex SEF registration rule to slow multi-dealer trading.
SEF registration rule to slow multi-dealer trading. According to Traders Magazine, SEF registration rules may hinder movement towards multi-dealer platforms by forex traders. The SEF registration rule, instituted by the US’s Commodity Futures Trading Commission requires all multi-dealer platforms to register as swap execution facilities. This may slow the...
recent from New Rules CFTC Public Utilities No-Action Letter Is Welcome Relief
The Commodity Futures Trading Commission (CFTC) released a no-action letter recently, offering relief to public utilities that were having trouble finding market participants willing to work with them for hedging purposes. The public utilities no-action letter should clear up an issue with the definition of...