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...

CFTC’s No Action Letter Provides Relief from Required Clearing

The CFTC’s Division of Clearing and Risk issued a no-action letter that provides relief from required clearing for a limited set of “stub swaps.” These are swaps that remain after the partial novation or partial termination of an original swap that was not required to be cleared because it...

Dodd-Frank Swap Data Overlooked in JPMorgan Whale Mess

Dodd-Frank derivatives rules have failed to give regulators a complete perspective of the swaps market, which includes the recent loss similar to the JPMorgan Chase & Co.’s London Whale trades. JPMorgan’s London Whale CFTC’s Commission member, Scott O’Malia told Bloomberg that the...

CME Group Launches Swaps Clearing in London

CME Group Inc. has launched a clearing service for interest rate swaps in London. The news comes a week after U.S. regulators began implementing mandates for rate swap clearing at CME’s headquarters. Reuters reports that the exchange operator’s London-based CME Clearing Europe won approval from...

CFTC May Face Legal Challenge from Bloomberg

The CFTC is facing threats of legal action from Bloomberg over the differences in the proposed treatment of swaps and swap-futures margins. Bloomberg is preparing to launch a swap execution facility (SEF), or a trading venue that will offer trading in standardized swap instruments, which is regulated by the...

CFTC Fines $3.5 Million in FX Fraud

The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court order for more than $3.5 million in restitution and civil monetary penalties against Nicholas Trimble and his two companies, Capstone FX Quantitative Analysis, Inc., and Beekeepers Fund Capital Management, LLC. A press release...

Some UK Banks Need More Capital

Andrew Bailey, Head of the UK Prudential Regulation Authority, told Parliament’s Treasury Select Committee that some banks need more capital. Reuters reports that some of Britian’s largest banks need more cpaital, but the government has not yet been asked to put cash into the Royal Bank of...

SEC Nominee White Vows ‘Bold and Unrelenting’ Enforcement

U.S. Securities and Exchange Commission (SEC) nominee Mary Jo White, intends to tell lawmakers that she will bring a “bold and unrelenting” enforcement program to the agency if she is confirmed by the U.S. Senate. Reuters reports that Ms. White stated in a prepared testimony released ahead of her...

CFTC Announces Mandatory Clearing of Swaps

Today, the CFTC announced today that swap dealers, major swap participants, and private funds active in the swaps market, are required to begin clearing certain index credit default swaps (CDS) and interest rate swaps that they entered into on, or after March 11, 2013. The CFTC stated in a press release,...