U.S. Treasury Advises Against Dodd-Frank Alterations

The U.S. Treasury Department is opposing a number of proposals that would alter new derivatives regulations in the Dodd- Frank Wall Street Reform Act. Jack Lew, the Treasury Secretary, urged lawmakers against altering the Dodd-Frank Act in a letter addressed to House Financial Services Committee Chairman Jeb...

DTCC Sues CFTC over “Anti-Competitive Swap Trading Data Rules”

The Depository Trust & Clearing Corp. (DTCC) sued the Commodity Futures Trading Commission (CFTC) on Friday claiming that the derivatives regulator made “anti-competitive rules,” regarding swap trading data, that favor two rival companies. The lawsuit filed by the DTCC, a financial services group...

Banks Oppose CFTC Proposal for Strict Controls of Overseas Derivatives

Wall street bankers and some of the top finance ministers in the world are engaged in an intense battle with the Commodity Futures Trading Commission, as they attempt to stop the agency from extending their regulatory powers abroad. The bankers and ministers are attempting to block a CFTC proposal, aimed to...

Bart Chilton to Propose Derivative Transaction Fee

Bart Chilton, Commissioner of the Commodity Futures Trading Commission (CFTC), plans to propose a transaction fee for derivative markets to help fund his agency and tighten regulation. The idea of a transaction fee has been tossed around for many years, but it has never really gained any steam. Chilton, one...

SEC to Propose Cross-Border Rules for Security Swaps

U.S. regulators intend to submit a proposal next week that will outline how new rules governing over-the-counter derivatives will affect cross-border transactions. Reuters reports that the Securities and Exchange Commission (SEC) announced that it will vote on the plan Wednesday. In addition, the SEC is...

Options Industry Opposes Market-to-Market Tax Proposal

The options industry is attempting to stop a proposal that would tax most financial derivatives on a market-to-market basis, that values positions based on their fair value. Reuters reports that the U.S. Securities Markets Coalition, which is composed of all eight exchange operators and the OCC, submitted a...

EU Swaps-Clearing Clash

European Union (EU) delegates are unable to settle a dispute between Germany and the U.K. regarding derivatives-clearing competition, requiring the discussion to begin again on draft legislation. Ireland, which holds the EU’s rotating presidency, is looking to find middle ground on the initiative,...

Swaps Clearing Deadline Nears

Swaps clearing deadline nears, as close to 250 to 300 U.S. investment managers are required to begin clearing swaps transactions by June 10th. According to Reuters, asset managers have been slow to create accounts with clearing houses for OTC derivatives, ahead of the mandatory deadline. This has led to an...

SEC Proposes New Exchange Tests to Prevent Tech Breakdowns

The Securities and Exchange Commission (SEC) is striving to limit and prevent technology breakdowns at at venues handling stock, options and bond trades, by proposing a new rule to prevent malfunctions that could harm markets. Bloomberg reports that for the first time, U.S. exchanges and brokers will be...

Federal Reserve Adopts Final Rule for Nonbank Firms

The U.S. Federal Reserve has approved a final rule that will clarify the process that the new U.S. risk council will follow when designating nonbank financial firms. The new rule sets requirements for determining when a company is “predominantly engaged in financial activities,” which is part of...