Hong Kong SFC and MA sidestep G-20 deadline

Hong Kong’s twin financial regulators, the Securities and Futures Commission (“SFC”) and the Monetary Authority (“MA”) , have refused to commit to finalizing over-the-counter derivatives reform by the G-20 deadline at the end of next year. In a joint consultation regarding...

In Brief: Position Limits Finalization

The CFTC has officially released the agenda for its October 18th meeting. As the press has speculated, the Commission will be considering position limits, as well as DCOs and a possible amendment to the swap regulation effective date. The CFTC has delayed two open meetings prior to this, most likely because...

Volcker Rule in limbo at CFTC (UPDATED)

UPDATE: According to Deputy Treasury Secretary Neal Wolin, the CFTC will most likely adopt Volcker Rule requirements matching those already proposed by other regulators. Says Wolin: “The CFTC will do its piece of this when it does, but I would expect there would be a consistent approach across the...

Unregistered CPO accused of commodity fraud

The CFTC has charged Oscar Hernandez and his companies Midway Trading Company and Conquest Investment Group with operating a commodity pool Ponzi scheme. The defendants did business as unregistered Commodity Pool Operators (“CPO”) and allegedly misappropriated $3 million from participants’...

Dodd-Frank position limits delayed again

The CFTC has postponed another meeting, pushing back a final vote on position limits until October 18th. The Commission was scheduled to meet on September 22nd, and then again on October 4th, to finalize a Dodd-Frank rule-making, but in recent weeks signs of internal strife have leaked into the public...

Democrats join Dodd-Frank position limits policy-making

Last week, Democrats in the House and Senate introduced matching bills entitled “Anti-Excessive Speculation Act of 2011.” H.R. 3006 and S. 1598 seek to override the position limits rule currently being drafted by the CFTC. Senator Bill Nelson of Florida and Representative Peter Welch of Vermont...

Accountant fined for inadequate FCM audit

The CFTC has filed and settled charges against public accounting firm McGladrey & Pullen, LLP, and firm partner David Shane. When McGladrey and Shane performed an audit on registered Futures Commission Merchant (“FCM”) One World Capital Group, LLC, they failed to report the many misstatements...

CFTC relaxes provisions of position limits rule

The final draft of the CFTC’s position limits rule contains key changes relaxing some provisions most hated by large institutions, according to a report by Reuters. However, the Commission has not yielded ground on sections snagging massive passives, nor will the changes convince all institutions not...

CFTC grants temporary relief from Large Swaps Trader Reporting

The CFTC’s Division of Market Oversight has issued a letter extending relief from two sections of the “Large Swaps Trader Reporting for Physical Commodities” rule. The relief is temporary and conditional, and parties are welcome to become fully compliant with reporting requirements before...

CTA charged with solicitation fraud, misrepresentation

The CFTC has brought charges against Commodity Trading Advisor (“CTA”) Paron Capital Management and the firm’s principal James D. Crombie for alleged false statements made to the NFA during an audit and for fraudulent solicitation. According to the CFTC brief, between August 2010 and March...