CFTC May Make Changes to Proposed Dodd-Frank Rule Regarding FCMs

The Commodity Futures Trading Commission (CFTC) is considering making adjustments to the Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations proposed rule. According to CNBC, it is still unclear what changes the CFTC will...

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...

CFTCs Gensler Says Hedge Funds May Skirt Trade Rules

Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that banks may be allowing hedge funds avoid rules meant to reduce market risks by routing trades through overseas offices. The top U.S. derivatives regulator made the announcement in a testimony prepared for a hearing on...

Sommers Criticizes CFTC’s Approach to Dodd-Frank Rule Implementation

Outgoing CFTC commissioner Jill Sommers has publicly expressed frustration at the CFTC’s imposed provisions on derivatives market participants, as reported in an exclusive interview with Energy Risk. Sommers is responding to the complex Dodd-Frank stipulations demanded of derivatives market...

CFTC on Futures as the Future of Swaps

The U.S. Commodity Futures Trading Commission (CFTC) will publicly discuss the “futurization” of the swaps market on January 31. The “futurization of swaps” is quickly shaping up to be a hot-button issue in early 2013. The CFTC’s discussion will purportedly revolve around the following:general...

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...

Margin Requirements Likely for Affiliate Swaps

The CFTC is considering amending swap rules to exempt inter-affiliate swaps from mandatory clearing on the condition that they comply with margin requirements, said sources familiar with the matter. While industry groups will likely welcome the clearing exemption, which would enable large firms to manage...

Gensler Expects Global Margin Rules by Mid-July

Speaking at an Institute of International Bankers conference yesterday, CFTC Chairman Gensler announced that the agency is working with the Federal Reserve, the SEC and international regulators to ensure that margin requirements for the $648 trillion over-the-counter swap market will be consistent across...

CFTC May Delay Cross-Border Swap Regulation

The CFTC has drafted a proposed exemptive order that would give foreign banks and overseas affiliates of U.S. banks temporary relief from some of the swap regulations being drawn up by the agency as required by the Dodd-Frank Act, according to sources familiar with the matter. The exemptive order would apply...

CFTC Obtains Injunction Against Former Floor Broker for Margin Call Avoidance Scheme

The Commodity Futures Trading Commission (CFTC) has obtained an injunction against Kent R.E. Whitney, a former floor broker of Chicago, Ill., to pay a $600,000 civil monetary penalty for making false and misleading statements to Chicago Mercantile Exchange (CME representatives, futures commission merchants,...