Should the CFTC and SEC Merge?: Both Sides of the Aisle Weigh-In

Calls for the CFTC and SEC to merge are now coming from both sides of the aisle. House Republicans agree with the New York Times that better oversight would be achieved through a merger. In a report released today, the House GOP is blames the downfall of MF Global in part on a rift between the agencies. The...

Slow Down or Speed Up?: Dodd-Frank, CFTC, SEC After Election

Now that Obama has won re-election, it remains to be seen whether the Commodity and Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will slow down or speed up their implementation of financial regulation stemming from the Dodd-Frank Act. Ironically, Obama’s election may...

Are SEC Capital Rules on Credit Derivatives Too Tough?

New Security and Exchange Commission (SEC) capital rules have banks threatening to stop offering client clearing for credit derivatives. The rules demand that futures commission merchants (FCMs) take a capital charge on a customer’s portfolio, regardless of concerns about margin variation or missed...

CFTC, SEC Host Private Election Day Meeting for Foreign Regulators

The U.S. Commodity Futures Trading Commission (CFTC) and Securities Exchange Commission (SEC) are meeting in private on election day to discuss international compliance. At issue is exactly how the global economy will move forward to regulate the $648 trillion swaps market. The private meeting is being held...

Derivatives Regulators (CFTC, SEC) Back Customer Protection Rules

Entities that regulate the derivatives industry, like the SEC and CFTC, are proposing a new rule that increases protections for customer funds. Commodity and Futures Trading Commission (CFTC) Chairman Gary Gensler said yesterday that the CFTC voted 5-0 behind closed doors to endorse the proposal. “This...

SEC Capital Requirement Stirs Controversy

A new rule on capital requirements proposed by the Securities and Exchange Commission (SEC) is causing controversy. The rule mandates that financial institutions will be required to hold between $20 million and $5 billion in capital for their securities derivatives. The SEC maintains that the proposed...

Drop Copies vs. Kill Switches: What’s Next for High-Frequency Trading?

Opposition is growing against the CFTCs preference for using the kill switch as a way to prevent mistakes caused by high-frequency trading. In several recent speeches, CFTC commissioner Bart Chilton has praised kill switch technology as a way of thwarting large-scale “market events” caused by...

From the SEC: New Capital and Margin Rules on Swaps Expected Today

The Securities and Exchange Commission (SEC) is expected to make public today its proposed rules concerning capital and margin requirements for security-based swap dealers and major security-based swap participants. The SEC is mandated by Dodd-Frank to coordinate its new rules with the Commodity Futures...

Buckets and Cheetahs? The CFTC’s Chilton on High-Frequency Trading

U.S. Commodity Futures Trading Commission (CFTC) commissioner Bart Chilton delivered an address to the High-Frequency Trading Leaders Forum in Chicago, Illinois, on Tuesday. Chilton’s address outlined the CFTC’s position on a range of topics related to the regulation of controversial high-frequency...

SEC Rejects “Kill Switch” Regulation for High-Frequency Trading

The U.S. Securities and Exchange Commission (SEC) has raised concerns about a “kill switch” approach to regulating high-frequency trading (HFT) platforms. “We are realizing the one-size-fits-all rule is questionable,” said Gergg Berman, the SEC’s trading and markets senior advisor to the...