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...

SEC Approves Using Facebook and Twitter to Alert Investors

The Securities and Exchange Commission (SEC) stated on Tuesday that public postings on sites such as Facebook and Twitter are now allowed to communicate company announcements. The SEC added that updates posted on social media are just as good as news releases and company websites — given that the companies...

CFTC Exempts Interaffiliate Trades from Dodd-Frank Clearing

The CFTC has adopted a rule that exempts interaffiliate trades from the Dodd-Frank Act requirements for clearing. Barclays, JPMorgan Chase & Co., and other banks are among those exempt from the Dodd-Frank Act swap market rules when trading between their own affiliates. Commissioners at the CFTC approved...

CFTC’s Division of Swap Dealers Issue Time-Limited No-Action Relief

The CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) has issued a time-limited no-action relief for swap dealers and major swap participants. The no action relief concerns certain recordkeeping obligations under Part 23 of the Commission’s Regulations. In a press release issued by...

Japan Launches LNG Futures Contract

Japan plans to launch the world’s first futures contract for liquefied natural gas, also known as LNG. This marks the country’s latest step toward creating a global market for fuel. As the U.S. increases its exports of fuel, the global market demand for LNG —a chilled and exportable form of...

CME Strives to Expand European Business Before New Exchange

The world’s largest futures exchange, CME Group Inc., is pushing to expand its European business as it begins a new London-based market, while IntercontinentalExchange Inc. advances their planned purchase of NYSE Euronext. CME, a Chicago based exchange, intends to open a new London exchange this year....

Oil Industry Avoids Swaps Rules

Oil industry companies have largely managed to avoid the scrutiny of derivatives trading and registration as swap dealers, according to Reuters. In January of this year, the CFTC required that companies register as dealers if they trade more than $8 billion in swaps a year. Reuters reports that currently, no...

Bank-Backed Initiative Eases SEF Migration

A newly created industry initiative backed by banks, has been launched with the hope  to standardize administrative messages on swap execution facilities (SEFs). The initiative also has a goal of automating exchanges between dealers and clients across multiple swaps platforms. The action, known as the...

LCH.Clearnet Cites ‘Major’ Tech Failure in December

LCH.Clearnet Ltd., one of the world’s largest interest-rate swap clearinghouse, cited a “major” information technology failure on December 31st of last year. The IT failure affected payment processing in the U.K. and interrupted contingency plans, Bloomberg and the Bank of England...

SEC’s Walter Recommends Maximum Reliance on FX Swaps Rules

The SEC’s Chairman Elisse Walter urged for a plan that would largely rely on foreign regulation for cross-border trades — ones that would only apply to U.S. rules in cases where no comparable regulations existed. Chairman Walter spoke via a video conference at the Australian Securities and Investment...