Regulators from the European Union and the U.K. urged the U.S. to delay new rules concerning swap contracts and to reconsider how the rules apply to foreign banks and transactions, a predicament called extraterritoriality.
The CFTC has charged Donald A. Newell and Quiditty, LLC with fraudulently allocating trades to a proprietary account.
OTC swaps trading has been lucrative for large banks, but they may find themselves in uncharted waters in the Dodd-Frank era.
The Volcker Rule, which would prohibit banks from engaging in proprietary trading, is expected to become final by late December.
Former Peregrine CEO Russell Wasendorf Sr. pleaded not guilty to 31 counts of making false statements to regulators on Friday.
The CFTC voted 3 to 2 yesterday to release a proposal that would allow swaps between financial firms with a common parent (“affiliate firms”) to be exempt from clearing requirements.
The Justice Department will likely not charge top MF Global executives with wrongdoing, sources say.
CFTC staff will revise Dodd-Frank extraterritoriality guidance in order to remove several errors and inconsistencies, sources say.
The CFTC is considering exempting inter-affiliate swaps from mandatory clearing on the condition that they comply with margin requirements.
As the CFTC widens its LIBOR probe in the wake of a $450 million settlement with Barclays, the agency continues to apply the active approach to regulation that has been favored by Chairman Gary Gensler since he took the helm in 2009.