CFTC Votes 5-0 to Pass Swap Clearing Rules

The U.S. Commodity Futures Trading Commission (CFTC) today finalized new rules that require certain interest rate swaps and credit default swaps (CDS) to be cleared by derivatives clearing organizations (DCOs). The rule “establishes the first clearing determination by the Commission under the Dodd Frank...

CFTC Position Limits Update: GOP Taps Hensarling, Won’t Change Tune

The U.S. Commodity and Futures Trading Commission (CFTC) will likely be at odds with new GOP Financial Services Committee head, Jeb Hensarling. Hensarling previously served as committee Vice Chairman under Spencer Bachus, who stepped down after reaching the maximum term limit for committee...

CFTC Swaps Update: Clearing Rules to be Completed This Week

The U.S. Commodity Futures Trading Commission (CFTC) will meet this Thursday to decide which swaps will require clearing at clearinghouses owned by CME Group Inc. and ICE. The move to central clearing, where clearinghouses take collateral, is mean to reduce systemic risk from default in the $640 trillion...

Volcker Rule Update: Chilton, Glass-Steagall, Living Wills, and More

The Volcker Rule is a function of the Dodd-Frank Act that limits proprietary trading by banks that hold consumer deposits. The rule is controversial, to say the least, but it has yet to go into effect. U.S. Commodity Futures Trading Commission member Bart Chilton is now saying that the implementation of the...

FX Swaps Exempted from Dodd-Frank Regulation by U.S. Treasury

 Foreign exchange (FX) swaps, the second largest derivatives trading market, is been exempted from Dodd-Frank regulation by the U.S. Treasury. Though some Democratic legislators criticized the move, the Treasury went forward with the exemption citing the high-levels of risk management inherent in FX...

CFTC Fights Back, Votes 3-2 to Appeal Position Limits Ruling

The Commodity Futures Trading Commission (CFTC) will move forward with an appeal of a federal court’s decision against position limits.  The Commission approved the appeal on a 3-2 vote. The position limits rule puts a limitation on the number of speculative positions one can hold on a given...

CFTC Commissioner Bart Chilton Talks Looming Swaps Rules

U.S. Commodity and Futures Trading Commission (CFTC) member Bart Chilton has stated that Swap Execution Facilities are here to stay. In an address delivered to Risk USA 2012, Chilton discussed future swaps rules expected by December 31, 2012. “This challenge is really different from just about any...

CME vs. CFTC vs. DTCC: The Future of Swaps Regulation

CME Group’s lawsuit against the CFTC over swaps regulation has a new twist: The Depository Trust and Clearing Corp (DTCC) is evaluating legal action against CME should the case move forward.CME Group is the country’s largest futures exchange and the operator of the Chicago Mercantile Exchange,...

Basel III Delayed; Regulators, Financial Players Need More Time

U.S. Regulators announced on Friday that banks will not be asked to meet at Jan. 1 for a rule based on recommendations from the Basel Committee. The rules, meant to bolster the economy against another financial crisis, require banks to maintain 7 percent or more of risk-weighted assets.The Office of the...

CFTC Sues Ex-Goldman Sachs Trader; Gets Sued by CME Group

The U.S. Commodity and Futures Trading Commission (CFTC) brought charges on Thursday against an ex-Goldman Sachs trader who they allege defrauded the bank of almost $120 million. The suit claims the former Goldman trader manually invented fake trades. The CFTC’s case claims that Matthew Marshall Taylor...