CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) announced it was offering no-action relief, a move that would ultimately offer amendments to legacy swaps without those being declared legacy swaps no longer.
Derivatives clearing organizations (DCOs) offer a valuable purpose in the investment community. Like many other investment operations, they’re thoroughly regulated, and sometimes those regulations are not as clear-cut as many would prefer. Thus, the Commodity Futures Trading Commission (CFTC) recent approved a new rule change that would address issues present in the DCO community and […]
Following the 2017 Primer on virtual currency, The CFTC has now published a primer on smart contracts. This aims to provide some advice and direction on the advantages and risks that can happen with smart contracts.
CFTC Approves a Final Rule to Amend Uncleared Swap Margin Requirements The Commodity Futures Trading Commission (CFTC) announced today that it has approved a final rule to amend its uncleared swap margin requirements (CFTC Margin Rule) to better align with certain rules (QFC Rules) adopted by the Board of Governors of the Federal Reserve System […]
Joseph Kim, Former Bitcoin and Litecoin Trader, Charged by CFTC The CFTC has ordered a trader to pay a large fine for orchestrating an illegal Bitcoin and Litecoin scheme. As a consequence of an order filed by the Commission, they have settled charges against Mr. Joseph Kim, a Phoenix, Arizona resident. Mr. Kim has been […]
FINRA Charges Ayre with Fraud and Unlawful Distribution of Unregistered Cryptocurrency Securities HempCoin FINRA announced today that it filed a complaint against Timothy Tilton Ayre of Agawam, Massachusetts, charging him with securities fraud and the unlawful distribution of an unregistered cryptocurrency security called HempCoin. This case represents FINRA’s first disciplinary action involving cryptocurrencies. In the complaint, […]
Federal judge orders Patrick K. McDonnell to pay over $1.1 million in connection with a lawsuit brought by the (CFTC) alleging fraud in connection with virtual currencies, including Bitcoin and Litecoin, CFTC announces.
The National Futures Association has sent a rule submission letter to the CFTC regarding new disclosure obligations for FCMs, IBs, CPOs, CTAs, and Pools and Managed Account Programs engaging in virtual currency derivatives and virtual currency transactions as well as other activities in underlying or spot virtual currencies would require the new disclosure.
This customer advisory emphasizes the need for conducting extensive research to determine your rights, what could affect the future value of digital coins or token, and steps you can take to avoid fraud or other problems. Many Initial Coin Offerings End in Fraud or Failure.
14 U.S Banks Get Dodd-Frank Extension from Federal Reserve and FDIC The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on Monday announced that they have extended the next resolution plan filing deadline for 14 domestic firms by one year to December 31, 2019, to allow additional time for the agencies to […]
CFTC and SEC Update 2008 Swaps MOU for Cohesion and Efficiency Latest press release from the CFTC and the SEC shows how far the two regulatory agencies have come to a cohesive approach to market regulation where their respective jurisdictions might overlap. This updated Memorandum of Understanding promises cooperation between the two regulators for efficiency. […]
Today the National Futures Association issued a press release announcing that its board approved the formation of a Swaps Proficiency Requirements Advisory Committee which will oversee the development of a Swaps Proficiency program for individuals to be tested on, according to the Commodity Exchange Act’s training standards. The exam would test Associated Persons on market […]
NFA Fines XFA Introducing Broker $100,000 For Compliance Violations Today the National Futures Association announced it ordered X-Change Financial Access, LLC. (XFA) Introducing Broker based in Chicago a $100,000 penalty for lack of “adequate supervisory procedures” to monitor and prevent violations of NFA Member Responsibility Action (MRA). Full Press Release below, “The Decision, issued by NFA’s […]
CFTC No Action from Including International Swaps for Global Development CFTC Reduces Marketplace Barriers for Global Development Initiatives May 16, 2018 Washington, DC — The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) today granted relief to non-US counterparties who enter into swaps with International Financial Institutions (IFIs), such as development banks. […]
Last week the NFA sent a notice regarding the Department of Treasury’s Office of Foreign Assets Control (OFAC) as it applies to Virtual Currency such as Bitcoin. The NFA urges its Futures Commission Merchants (FCM) and Introducing Brokers (IB’s) to review the OFAC FAQ for cryptocurrency transactions compliance with their Anti-Money Laundering program.
April saw the most enforcement actions by the CFTC for the year 2018. Some of these were the typical commodity pool schemes, precious metals schemes, spoofing, and fraud in Retail Forex; yet other enforcement actions involved new technologies such as Binary Options fraud relying on technology.
ATM Coin Part of Binary Options Fraud by Blue Bit Banc, CFTC Order Freezes Assets Last week a new cryptocurrency called ATM Coin was involved with CFTC charges against a Binary Options fraud scheme by Blue Bit Banc and other entities. Blake Kantor, aka Bill Gordon, and Nathan Mullins along with companies Blue Bit bank, […]
FDIC Hosts Use of Technology in the Business of Banking Forum in Arlington, Virginia The Federal Deposit Insurance Corporation (FDIC) will host a forum on the Use of Technology in the Business of Banking on Monday, May 7, 2018. Panels will focus on emerging technologies that are transforming banking operations; the impact of emerging technologies on retail banking, including […]
Floor Broker Fined $150,000 by the CFTC for “Spoofing” CME Wheat Futures Market The CFTC fined Anuj C. Singhal $150,000 to settle charges for “spoofing” the Chicago Mercantile Exchange (CME) wheat futures market. The relevant period of the offense was at least between March and June 2016, but this was a repeat offense since disciplinary […]
Aegis Capital Pays $1.3 Million for Anti-Money Laundering Violations FINRA and the Securities Exchange Commission have fined Aegis Capital Corp., NY based Broker-Dealer, $550,000 and $750,000, respectively, in enforcement actions for Anti-Money Laundering (AML) Violations. FINRA Fines Aegis Capital Corp. $550,000 On March 28th FINRA announced in a press release that they had fined Aegis Capital over half […]
CFTC Asks Court To Serve Summons Through Email for Bitcoin Scammer Dillon Dean Bitcoin binary options trader Dillon Michael Dean is strategically avoiding the CFTC court summons accusing him and his company of fraud. On January 18th the Commission filed an enforcement action against Dean and his company, The Entrepreneurs Headquarters Limited, alleging they misappropriated over […]
Court Fines Former Pastor Wesley Allen Brown and Associates $8.6 for Defrauding Church Members On March 23, 2015 the CFTC filed a civil enforcement action against defendants Allen Brown, a former pastor now serving time in prison, for defrauding church congregants in violation of federal commodity laws. Brown abused his position as a religious leader […]
Federal Judge Sides With CFTC in Patrick McDonnell Bitcoin Fraud Case In January 18, 2018 the CFTC filed a complaint against Patrick McDonnell and his company CabbageTech, Corp. d/b/a Coin Drop Markets charging them with fraud in purchases and trading of Bitcoin and Litecoin. Yesterday’s hearing on March 6th, the Honorable Jack B. Weinstein of the U.S. […]
CFTC Issues Its First Virtual Currency “Pump-and-Dump” Schemes Warning The Commission continues its involvement in the virtual currency market. On February 15th the CFTC issued its first ever Costumer Advisory warning against virtual currency “pump-and-dump” schemes. Asserting its jurisdiction over cryptocurrency the original press release from the Commission reads, “the CFTC maintains general anti-fraud and […]
Government Shutdown Causes CFTC to Reschedule TAC Meeting on Cryptocurrency The CFTC had scheduled their Technology Advisory Committee ( TAC meeting ) on Cryptocurrency for January 23rd (Tomorrow), but today issued the following press release: CFTC Cancels TAC Meeting Scheduled for January 23 Washington, DC — Due to a lapse in appropriations that occurred at midnight […]
Joint Statement Addressing Virtual Currency by CFTC and SEC Enforcement Directors. Both the CFTC and the Security Exchange Commission (SEC) became increasingly active last year enforcing their jurisdiction in the virtual currency landscape. On December 2017 the SEC Chairman Jay Clayton issued a statement on the state of Cryptocurrency and Initial Coin Offerings (ICOs). Promptly the […]
On January 18, 2018 the CFTC filed a civil enforcement action and a federal civil enforcement action in the U.S. District Court for the Eastern District of New York against The Entrepreneurs Headquarters Ltd., and CabbageTech, Corp. d/b/a Coin Drop Markets (CDM), respectively, for fraudulent schemes. Both charges involve fraud in Bitcoin virtual currency, signaling the Commission […]
Update: January 25, 2018 CFTC Releases updated agenda CFTC’s Market Risk Advisory Committee Announces Agenda for January 31 Public Meeting Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced the agenda for the upcoming Market Risk Advisory Committee (MRAC) public meeting that will be held on January 31, 2018 at CFTC’s headquarters in […]
Protecting America’s Agricultural Markets: Agricultural Futures Markets Conference On April 5th through 6th, 2018, the CFTC will partner with the Kansas State University Center for Risk Management Education and Research to jointly host the first-ever conference for U.S Agricultural Futures Markets. The Agricultural Futures Markets Conference will focus on current macro-economic trends of American agricultural futures markets. “Kansas […]
CFTC Chairman J. Christopher Giancarlo received a letter today from U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman Pat Roberts and Ranking member Debbie Stabenow supporting CFTC commitment to equivalence agreement with the European Commission (EC), and pledge support for future CFTC decisions. After years of negotiations, the CFTC and EC reached a bi-partisan equivalence […]
CFTC Background on Oversight of and Approach to Virtual Currency Futures Markets Along with Chairman J. Christopher Giancarlo’s statement on Bitcoin and virtual currency, the CFTC issued a letter explaining the Commission’s approach to regulating Bitcoin futures markets. Their aim is to clarify their jurisdiction and regulatory approach to Bitcoin products. It provides a background on […]
After commending the Securities Exchange Commission’s statement on Initial Coin Offerings (ICO), CFTC Chairman J. Christopher Giancarlo released his own statement on Bitcoin and Virtual Currency today. ICOs and Cryptocurrency have posed a great challenges to regulation agencies after their exponential growth in 2017. The SEC announced it took regulatory actions against ICO scams last year […]
Not-for-profit FINRA (Financial Industry Regulatory Authority) issued a warning titled “Dont Fall for Cryptocurrency-Related Stock Scams” alerting investros of Bitcoin and ICO frauds. FINRA is not part of any federal government agency. Instead the non-profit organization is authorized by Congress as self-regulatory organization (SRO) to regulate the broker-dealer industry. In their investor alert they warn against […]
The Division of Clearing and Risk (DCR) responded to letter from the International Swaps and Derivatives Association, Inc. (ISDA) from November requesting extensions of CFTC exemption from the swap clearing requirement for inter-affiliate swaps and extension of no-action relief letters by the Commission. The Division of Market Oversight (DMO) responded to the ISDA request for extension […]
Mintco Precious Metals Traders Fined and Banned by CFTC Court Order Federal Court sides with CFTC Enforcement Actions filed on September 2015 against Florida-based Mintco LLC and their owners Stuart Rubin and Richard Q. Zimmerman. Consent Orders by Federal Judge Beth F. Bloom fines Mintco $250,000 and Zimmerman $45,000, as well as a 3-year trading […]
This month the National Futures Association announced to its members additional reporting requirements for Bitcoin or cryptocurrency soliciting, orders, trading, and offering such products. The notice to members was address to Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTA), and Futures Commission Merchant (FCMs) for which the NFA is the DSRO. Any of these […]
The CFTC defines its authority over retail commodity transactions involving virtual currency and Bitcoin after it brought enforcement actions against Bitfinex for not meeting “actual delivery” exemption. On Friday 15th 2017 the CFTC released a Proposed Interpretation of its view of the term “actual delivery” exception that may apply to virtual currency transactions under the Commodity […]
RED List Identifies Entities Operating Illegally for Binary Options and Forex Washington, DC — As part of the Commodity Futures Trading Commission’s (CFTC) ongoing efforts to help protect Americans from fraud, today the CFTC added 21 new names to the Registration Deficient List (RED List). These 21 new additions bring the total number of foreign entities […]
Washington Federal Bank for Savings, Chicago, Illinois, was closed today by the Office of the Comptroller of the Currency, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Royal Savings Bank, Chicago, Illinois, to assume the insured deposits of […]
Understand the Risks of Virtual Currency Trading The U.S. Commodity Futures Trading Commission (CFTC) is issuing this customer advisory to inform the public of possible risks associated with investing or speculating in virtual currencies or recently launched Bitcoin futures and options. Virtual currency is a digital representation of value that functions as a medium of […]
Today the CFTC made an announcement of its brand new Virtual Currency Resource Webpage. It focuses primarily on Bitcoin, as denoted by the webpage address, cftc.gov/bitcoin, but it serves as an annex of all cryptocurrency activity by the Commission. After an introductory paragraph on Bitcoin and cryptocurrency, the page has links to CFTC documents such as LabCFTC’s […]
Securities and Exchange Commission (SEC) Chairman Jay Clayton released a public announcement regarding Initial Coin Offerings ( ICO ) which gave advise to investors looking into ICOs on Monday, December 11, 2017. CFTC’s own Chairman, J. Christopher Giancarlo, commended Chairman Clayton’s statement: Washington, DC — Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo issued the following […]
The CFTC’s Division of Swap Dealer and Intermediary Oversight responded to a letter from the Futures Industry Association (FIA) requesting guidance for Commodity Trading Advisor (CTAs) registration requirements. The Division stated in a staff letter that commodity trading advice conducted “solely incidental” to a profession, or “solely in connection with” business is not subject to […]
Last week the European Commission (EC) and the CFTC announced mutual recognition of each other’s derivatives trading venues, fulfilling the Common Approach announced this October the 13th, 2017 by the two regulatory agencies. On Tuesday, December 5, 2017 the EC announced it adopted an equivalence decision to recognize certain trading venues authorized by the CFTC […]
The CFTC released a statement of three regulated US Exchanges, CME, CFE, and Cantor self-certified new contract for Bitcoin futures and products. On Friday December 1st, the CFTC announced that the world’s largest futures exchange, the Chicago Mercantile Exchange (CME) completed self-certification with the Commission to launch Bitcoin futures contract on December 18. Futures contracts […]
On November 14th the CFTC Division of Market Oversight extended time-limited No-Action relief for Swap Execution Facilities (SEFs) from certain block trade requirements. Shortly after on November 20th, the Division issued No-Action Relief for SEF Chief Compliance Officer Annual Compliance Reports and SEF fourth Quarter Financial Reports timing requirements extension for up to 90 days. […]
US Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo and European Commission (EC) Vice-President Valdis Dombrovskis announced a common approach for the mutual recognition of EU and US derivatives trading venues. The two regulatory bodies have made a joint announcement to ensure that both US and EU swap market counterparts are able to comply with […]
Currently, CFTC Chairman J. Christopher Giancarlo is on a 10-day trip in Europe. Derivatives industry attorneys speculate that a European equivalence pact on swap execution rules might come into fruition very soon. If this happens, it would enable swap trading on platforms located in both, the U.S. and Europe. An absence of this agreement would […]
LedgerX Approved to Trade Bitcoin Futures LedgerX, a trading and clearing platform for Bitcoin, became the first company to be approved by the Commodity Futures Trading Commission (CFTC) to trade Bitcoin futures. This is one of a few of available current events that shows that Bitcoin is on the verge of being overseen by federal […]
Christopher Giancarlo was nominated by the US Commodity Futures Trading Commission (CFTC) as the Chairman of the regulatory agency. Moreover, Brian Quintenz and Rostin Behnam, both of who are Republican nominees, were confirmed as CFTC Commissioners. However, a third Republican nominee, Dawn Stump, did not receive the same treatment. According to a Senate Democratic aide, […]
Washington, D.C. – In a Congressional testimony, the US Commodity Futures Trading Commission (CFTC) intimated an increase of the agency’s budget to oversee trading involved with blockchain technology. An additional $31 million needed On June 8, CFTC’s Acting-Chairman, J. Christopher Giancarlo, testified before the Congressional Committee on Appropriations Subcommittee on Agriculture, Rural Development and Related […]
Washington, DC – Earlier this June, the U.S. Commodity Futures Trading Commission (CFTC) charged David Liew for illegal practices in the precious metals futures contracts. CFTC banned David Liew from trading, because of preceding events of manipulating the gold and silver markets. As a junior trader, on the precious metals desk, in a large financial institution, Deutche Bank, […]
Washington, DC — Today, a no-action letter issued by the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight and Division of Clearing and Risk (Divisions) will serve as an extension to the relief granted in CFTC Letter No. 16-58 which will be expiring on June 15, 2017. In addition to the no-action letter […]
Washington, DC – A unanimous vote by the U.S. Commodity Futures Trading Commission (CFTC) to amend Whistleblower Rules has resulted in, among other things, stronger anti-retaliation protections for whistleblowers as well as enhanced processes for reviewing whistleblower claims. A reinterpretation of the CFTC’s anti-retaliation authority under the Commodity Exchange Act (CEA) concludes that the CFTC […]
Washington, DC — In keeping with the U.S Commodity Futures Trading Commission’s (CFTC) attempts to safeguard Americans from fraud, 71 new names have been added to the RED list bringing the total number of companies on this list to over 11o. The “Registration Deficient, ” now known as the red list which as established in […]
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against The Royal Bank of Scotland plc (RBS) for attempted manipulation of the ISDAFIX benchmark which requires RBS to pay an $85 million civil monetary penalty. The CFTC Order revealed that during a five-year period, commencing in […]
Recently appointed CFTC Chairman Tim Massad announced last week that there were “a lot of things” he would like to do to continue the CFTC’s goal of regulating financial markets, but that he is held back by strict congressional budget constraints
The CFTC’s Division of Market Oversight this week granted no-action relief from certain requirements applicable to swap dealers and major swap participants regarding the reporting of swap transactions to swap data repositories. The no-action relief, issues June 30, 2014, extends previous no-action relief regarding the reporting of valuation data reporting of cleared swaps.
Maxine Waters, ranking member of the House Financial Services Committee, urged the CFTC this week to begin investigating the offshore actions of Wall Street banks in avoiding certain mandates set forth in the Dodd-Frank Act.
The CFTC announced last week its first award under the whistleblower award program initiated pursuant to the Dodd-Frank Act. Under the program, eligible whistleblowers are entitled to a financial award where original information provided leads to a successful enforcement action and the collection of at least $1 million. Whistleblowers who file successful claims are also entitled to job security and […]
The Commodity Futures Trading Commission (CFTC) released a no-action letter recently, offering relief to public utilities that were having trouble finding market participants willing to work with them for hedging purposes.
The Commodity Futures Trading Commission’s internal regulator has determined that the CFTC may have been in violation of a federal law that requires the Commission to maintain a research program after suspending outside research from being published.
The Commodity Futures Trading Commission issued a no-action letter on Friday, stating that the Commission will be extending its overseas trading rules deadline, giving overseas traders more time to comply with the CFTC’s rules.
In a study done by the ISDA, Cross-Border Fragmentation of Global OTC Derivatives: An Empirical Analysis, it was found that the trade volume between Europe and the US in the OTC market dropped 77% in October
The CFTC has released a request for comment on around 70 questions regarding swaps-data reporting and how to use the data it collects from companies like Depository Trust & Clearing Corp. and CME Group Inc.
The Commodity Futures Trading Commission and the Federal Energy Regulatory Commission have released a “Memorandum of Understanding” (MOU) detailing their agreement to share market data between one another.
Under the European Parliament Economic and Monetary Affairs Committee’s revised European benchmark legislation, EU based institutions will be forbidden from holding any products linked to unauthorized benchmarks.
US banks and central counter parties (CCPs) seem to be gaining confidence in the European Commission (EC) overlooking differences in their clearing house rules, preventing US CCPs from losing European clients.
After a meeting this morning, it seems the transaction tax plan, which failed to gain widespread acceptance at first, has received backing from 11 euro zone countries– though this acceptance could perhaps be seen as begrudging in some cases.
The banking industry has been pushing to have a group of debt investments omitted from the Volcker rule, saying that they differ from the types of investments that the Volcker rule was designed to regulate.
Without the no-action letter, any traders participating in package swap trading would have to report any package swap that includes swaps subject to the made-available-to-trade (MAT) ruling to SEFs by February 15th.
The EU is set to implement new European derivatives rules this Wednesday in an attempt to begin bringing more transparency to the $700 trillion dollar market that has been blamed for being a major factor in the 2008 financial crisis.
Beginning on February 12th, derivative transactions made by businesses in the EU will have to be reported to data banks known as trade repositories. This will be one of the EU’s first steps toward swap reform geared toward preventing a financial crisis similar to 2008 from occurring again.
The European Union’s plan to quell big banks’ proprietary trading has been met with criticism from French banking lobbyists who say it will give an advantage to US banks, which would not be affected by the new rules.
The CFTC will be putting together a group to review its swap report data collection process, as well as ensure that banks and other financial institutions are reporting and keeping records that are on par with the rules the Commission has put in place.
Interestingly, with Bart Chilton leaving the CFTC soon, this will mark the first time the CFTC, originally created to monitor commodity trading and hedging within the agricultural industry, will be without a chairman or commissioner with a background in agriculture.
The first task of the IVSC, it seems, will be developing a benchmark by which to base this valuation. There is currently little to no guidance on how to price an asset contained within a company’s account, particularly when there is no market for the asset.
In accordance with CFTC regulation, swaps that are subject to MAT determinations, whether listed by Javelin or any other platform, will be subject to the trade execution mandate under a sections of the Commodity Exchange Act about one month after certification (February 15).
the European Union has successfully come to an agreement on a market rule overhaul that will tighten measures to regulate the derivatives market, slowing down high frequency trading and curbing speculation in commodity derivatives.
According to CFTC.gov, five federal agencies have approved an interim rule that will allow banks to keep certain securities, namely collateralized debt obligations, which are backed by trust preferred securities (TruPS CDOs).
According to Bloomberg, the Commodity Futures Trading Commission (CFTC) is set to push interest-rate and credit swaps onto SEFs in the near future. While the CFTC is currently reviewing the plans, they haven’t found any reason to object to them as of yet. And with the first of these new requirements being instituted on January 16th, […]
According to the Wall Street Journal, the Commodity Futures Trading Commission may be looking to force the derivatives trading rules the Commission has implemented in the US onto foreign markets. The CFTC had agreed to delay the deadline for foreign markets to comply to US trading rules while the European Commission and other foreign regulators […]
As the year comes to an end, so will the term for current Commodity Futures Trading Commission chairman Gary Gensler, according to Bloomberg, commissioner Mark P. Wetjen will be temporarily taking his place. Though Obama has nominated Timothy Massad to take the position, the Senate is yet to hold a hearing to vote on the […]
According to Reuters, a lack of congruency between US and EU over how to police the $640 trillion dollar derivative market is causing frustration within Asian Pacific markets, and could lead to serious and expensive consequences. While reaching an agreed upon solution for derivative regulation is on everyone’s to do list, one of the major […]
According to the Wall Street Journal, the Federal Deposit Insurance Corp., Federal Reserve Board, Securities and Exchange Commission, and Commodity Futures Trading Commission have all voted to approve the infamous Volcker Rule. While the vote for Volcker Rule approval was unanimous for the FDIC and the Federal Reserve, the CFTC approved it by 3-1, while […]
According to the New York Post, several of the US’s largest banks plan to sue the Commodity Futures Trading Commission (CFTC) over some of the new rules it has been implementing. The banks are looking to get many of the new rules reversed through the law suit, citing that the CFTC violated rulemaking procedures while […]
According to Reuters, many Asian and U.S. banks are looking for ways around new rules implemented by the Commodity Futures Trading Commission and other regulators. Some fear their maneuvers may lead to liquidity shortages within the market.
According to CFTC.gov, the Commodity Futures Trading Commission has filed a civil enforcement action against principal trading organization for both ”banging the close” and “spoofing” the IDEX USD Three-Month Interest Rate Swap Futures Contract.
According to Businessweek, the Commodity Futures Trading Commission will be voting today on a new rule that will result in Treasury collateral being subject to a “prearranged and highly reliable funding arrangement.” Should the rule be passed, clearinghouses will be forced to back Treasury bonds with credit lines. The rule, according to experts, could cause […]
It seems safe to assume that the SEF registration rules will disrupt these trends, as traders will be more inclined to conduct business via single-trade platforms in order to circumvent the process altogether.
According to the Financial Times, the White House plans to nominate Timothy Massad for chairman of the Commodity Futures Trading Commission (CFTC). Massad, a US treasury official, will be taking the place of current CFTC chairman Gary Gensler, who will be stepping down towards the end of the year. How Massad plans to run the […]
According to Bloomberg, the EU’s antitrust probe will see delays now that the banks involved with the case have successfully fought for the ability to see the confidential information the Commission has gathered on the banks. The information is vital to fighting the antitrust complaint that was filed by the EU back in July. This […]
Despite pleas from foreign markets and regulators alike, Gensler refuses to back down. During the address he stated that if a swap dealer, US or non-US, negotiates or executes a swap anywhere in the US, then it falls under Dodd-Frank.
The call for change to the ISDA comes in the wake of the collapse of Lehman Brothers and the ensuing 2008 financial crisis. The delay will allow regulators and failing banks to sell off contracts in a more orderly fashion, reducing volatility in the market.
According to Business Week, the Federal Reserve liquidity coverage ratio proposal was approved earlier today. The rule, which affects banks with over a quarter of a trillion dollars in assets the most, will take the approved international rules a few steps further.
According to Bloomberg.com, many of the United States’ largest banks aren’t happy with a recently proposed rule to increase the minimum capital a bank needs to hold against potential losses. Banks are saying the new minimum– 5 percent for holding banks and 6 percent for their actual banking components– are arbitrary and harmful, claiming that […]
Experts are saying that the CFTC’s new rules will affect fund performance, as the higher cost of doing business will detract from returns. Many also worry that new disclosure rules will lead to confidentiality issues offshore.
While White feels all of the provided information she mentioned is or has been useful to investors, she wonders if there isn’t a more efficient way to provide this information, fearing that the often lengthy reports can be difficult for investors to work through.
The government shutdown, which started over the House’s inability to come to an agreement on the Affordable Care Act, has since changed trajectory and is now a fight over how the government will pay down its debt, and under what terms will the debt ceiling be raised.
The new rule is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law in 2010 as a means to create more transparency in the financial services industry in response to the 2008 financial crises.
O’Malia feels the use of data will allow the CFTC to understand problems that can occur within the market, citing the Flash Crash of 2010, where the market was found to be vulnerable to automated trading errors after the event.
O’Malia, who was named commissioner of the CFTC in 2009, has stated that there have not been any significant issues to date, though they were having difficulty getting consistent data on just how many trades have been executed through the facilities so far.
According to bankingtech.com, senior financial industry executives are less than pleased with the US and EU’s inability to work together on the implementation of derivatives reforms and swap execution facilities. While the Dodd-Frank Act was instituted by the US government to help create transparency in the swaps market, often cited as a major cause of […]
In the investigation, the CFTC sat down with Susan Butterman to ask her some questions. Butterman, who would often pre-stamp several order forms, covering every time bracket as a ways to be prepared, told the CFTC said that she only stamped forms as orders were being processed.
Gensler’s apparently unyielding stance on deadlines, despite continuous complaints and requests for delays is impressive considering not only that he will be stepping down as Chairman within the month, but that he is going forward with these deadlines in the midst of a government shutdown.
The CFTC mandated that all swaps trading must be done through SEFs in order to add more transparency to the swaps market, which is often considered to be a major factor in the cause of the 2008 financial crisis.
Outside of enforcement actions, Mr. Meister enhanced collaborative relationships with the U.S. Justice department, the FBI, and many other domestic and foreign agencies. He also smoothed out the Division’s investigative and management techniques, increasing the speed in which cases were handled, and ensuring consistent enforcement actions across the board.
The delays will affect the required reporting of foreign exchange swaps as well as equity swaps, by one and two months, respectively. The largest part of the market, fixed income and credit swaps, will be unaffected, and will begin being reported on October 2nd.
According to CFTC.gov, the Commodity Futures Trading Commission (CFTC) has closed its investigation on the silver market after five years. While the CFTC normally keeps a tight lid on its investigations, it has decided to announce this finalization publicly due to the amount of time that has passed since the investigation was initiated. The CFTC’s department […]
ccupy Wall Street is back, and this time their target is high frequency trading. On the second anniversary of the Occupy Wall Street movement, protesters will be gathering in New York City to demand Congress pass the “Robin Hood Tax.”
The U.S. Commodity Futures Trading Commission (CFTC) has approved the applications of SwapEx LLC, GFI Swaps Exchange LLC, and MarketAxess SEF Corporation for temporary registration as swap execution facilities (SEFs) pursuant to section 5h of the Commodity Exchange Act and section 37.3(c) of the Commission’s regulations.
The U.S. Commodity Futures Trading Commission today published a Concept Release on Risk Controls and System Safeguards for Automated Trading Environments in the Federal Register. The Release is intended to serve as an overview of potential measures that may be able reduce the likelihood and mitigate the impact of market disrupting events.
Hurricane Sandy took a physical toll on New York City, but a joint meeting of the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Commodity Futures Trading Commission (CFTC) on the topic of disaster recovery, proved that it’s not just physical damage that companies are worried about.
Also in his testimony, Gensler cited the recent progress made with cross-border swaps regulation in addition to registration of securities as positive steps forward in the CFTC’s aim to create transparency in the futures industry.
In response to several high profile anomalies in the trading market due to High Frequency Trading (HFT) in the past year, the Finance Industry Regulatory Authority (Finra) has been looking into several trading firms with how they use and control their trading algorithms.
Terrence Duffy, Chairmen of the CME Group, counseled Senators against a pending CFTC ruling regarding collateral set aside by brokerages on July 17th, 2013. Duffy’s presentation before the Senate Committee on Agriculture, Nutrition and Forestry was in a hearing to evaluate the CFTC.
Since the last cybersecurity simulation in 2011, the list of firms and institutions wishing to be included in this years attack has more than doubled, according to the SIFMA brief released today. The organizations undergoing the attack has grown to include stock exchanges, businesses, the U.S. Treasury and Department of Homeland Security, and the simulation will attempt to expose any critical weaknesses in security these firms may have.
Christopher Ehrman was most recently an Assistant Director at the Office of Market Intelligence at the Securities and Exchange Commission, and brings with him extensive regulatory experience. As Gary Gensler said, in a CFTC press release that came out today, “Chris, who comes to us after many years of experience in the SEC’s Enforcement Division, takes on an important role at the Commission to oversee our Whistleblower program and engage with people who report misconduct in the futures and swaps markets.”
The impacts of the Commodities Futures Trading Commission’s (CFTC) response to cross-border swaps are yet unknown. With a 75 day period of guidance in addition implementation of the final ruling, this unprecedented move by the CFTC may deeply impact the derivatives market.
The European Commission and the CFTC have many advantages of developing cross-border regulations together. In light of this demonstration of international cooperation, some have hopes that the G20 promise to promote transparency in over-the-counter derivatives trading will become more of a focal point in regulation.
On Monday, the Basel Committee released a discussion paper dealing with the simplicity of the regulatory systems, leading some to take it as a sign that the committee may advocate simpler regulations in the future.
After weeks of speculation, it looks like the Commodity Futures Trading Commission (CFTC) will conclude a foreign regulatory issue this Friday, July 12th. The vote will regard how domestic regulations on swaps apply to foreign firms wishing to do business with those in the United States. The regulations have become a devisive issue in the […]
The first paper improves upon the interim credit assessment suggestions that the Basel Committee made with the Current Exposure Method (CEM) and the Standardised Method. The new credit risk assessment of counterparties in derivative trading fine-tune upon the CEM and the Standardised Method by creating separate risk exposure plans for margined and unmargined trades.
Corzine originally joined MF Global with intent to turn the futures broker into an investment bank, and according to the CFTC release, “Corzine’s strategy called for making increasingly risky and larger investments of the firm’s money.” Apparently, Corzine had been made aware of the low cash balance of the firm, but still continued to order the payback of loans and obligations.
Gary Gensler, Chairman of the CFTC, told members of the Senate Appropriations committee that the CFTC would let the extension expire and continue reformation. He also mentioned that swap participants, including big banks, would comply with the regulations. An exemption from cross-border swap regulation is set to expire on June 12th, meaning firms participating in swaps would have to finalize compliance by that date.
The Commodity Futures Trading Commission’s interim relief for cross-border swaps is due to expire on July 12th, but in a speech at a London Futures Industry Associated expo, CFTC Commissioner Mark Wetjen made it clear he thinks the CFTC should provide legal advice and assurance until that point. The approach Mark Wetjen advocated for is purportedly […]
With Gary Gensler’s term expired in April, 2013 and a re-appointment being as soon as July, Elizabeth Warren is decrying commissioners for what she sees as stalling regulation. Certain policies that the Commodity Futures Trading Commission has been working on include a deal with cross-border swaps. One of the policies would require any domestic bank […]
On Tuesday, June 18th 2013, CFTC Commissioner Bart Chilton gave the keynote address in the conference Hedge Fund Industry in 2013, which was held in Chicago, Illinois. In the address, he gives some insight into the working parts behind the Commodities Futures Trading Commission, and why they see some aspects of the financial industry as […]
The other members on the commission, such as Sommers, Chilton, O’Malia, and Wetjen are also up for re-appointments this year, and lobbyists and lawyers are waiting eagerly to see what the turnover is. According to the bylaws of the Commission, each commissioner is supposed to serve a five year term, as appointed by the president. Furthermore, no more than three members may be of the same political party at the same time.
Until the robustness of US credit swap policy has been reviewed, some European banks have been given more restricted access to clearing houses outside of the European Union. Because of concerns that US banking policies may not be compliant with European policies, credit swap rules have become a contentious issue between US and EU regulatory bodies, according to Bloomberg.
The Commodity Futures Trading Commission (CFTC) was prepared to supervise all derivatives trading, including FX trading ─however the Securities and Exchange Commission (SEC) took a more hands-off approach by allowing overseas derivative trading to bypass U.S. regulation if the country in which they occur had a regulation system that closely resembles our own.
The Wall Street Journal reports that seven banks have received extensions on complying with the rule that would require them to “move risky swap activities into separate affiliates.” The Office of the Comptroller of the Currency granted the two year extensions to Bank of America Corp., J.P. Morgan Chase & Co., Citigroup Inc., Wells Fargo […]
According to the International Finance Review (IFR), the initial CSA that was published by the ISDA in 1994 had an enormous amount of optionality by allowing participants to use a “variety of collateral in differing currencies,” making the valuation of even the simplest swaps an intricate ordeal.
The new Standardized CSA aims to remove this optionality while solidifying overnight index swaps (OiS) discounting as the industry standard and creating a consistent valuation process for cleared and uncleared swaps.
CFTC chairman, Gary Gensler, is set to meet with European financial regulators on June 20th in Montreal, reports The Wall St. Journal. The meeting will be a hurdle for Gensler, who opposes an extension for the delay of U.S. derivative rules taking effect on July 12 on foreign banks and foreign branches of U.S banks. […]
With this new position, O’Connor will have hands-on involvement in driving ISDA’s strategic initiatives. The pace and scope of those initiatives continues to increase given global regulatory reform and the continued evolution of the financial markets and the OTC derivatives business. To address these needs, the decision was made to appoint a full-time chairman who could devote more time and energy to directing and leading the Association.
The Securities and Exchange Commission is looking to push through a plan that would aim to prevent another run on money market funds, The Washington Post reports. This comes as a response to the events of 2008, when a major money market fund fell below $1 a share, something which has occurred only three times […]
Christopher Hale and Eric Richardson were charged for misleading their clients on the success of their futures trading. Bentley Equities told their clients that they were actively managing more than $1 million in commodity futures accounts, when in reality they never managed more than $480,000 in commodity futures at one time.
More than 50 investor groups released a statement expressing their disagreement with the lawsuit filed against the Securities and Exchange Commission (SEC) by the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable. The lawsuit is in regards to the section of the Dodd-Frank act that requires companies to disclose whether […]
Reuters has reported that participating European countries plan to cut the FTT (financial transaction tax) rate by up to 90% and may have its “full roll-out” delayed. The tax, which is set to target speculative trading, would have its rate reduced from 0.1 percent to 0.01 percent and be applied gradually. If it is put […]
The E.U. has asked for a delay in the enforcement of new swaps rules set to take effect on July 12, when the exemptions for overseas banks of the Dodd-Frank Act expire. In a report by Bloomberg.com, the European Commission addressed Gary Gensler, the head of the U.S. Commodity Futures Trading Commission. The EC requested […]
Barney Frank himself, famous for his stance of government regulation has said, “I believe that a free market approach in this area will be better for the economy and all concerned parties than the current system,” yet the amendment remains in effect.
Washington, DC – FIA President and CEO Walt Lukken today made the following statement on the Basel Committee’s agreement “on a targeted and limited revision of the leverage ratio to allow margin... Houston, TX —FIA President and CEO Walt Lukken today made the following opening remarks at the FIA Commodities Symposium in Houston, Texas. The following remarks are prepared for delivery:...FIA President and CEO Walt Lukken today made the following statement on the successful Senate confirmation of Dr. Heath Tarbert to serve as chairman of the Commodity Futures Trading Commission (...London, U.K.—FIA’s President and CEO Walt Lukken today made the following statement on the release “FIA appreciates the hard work and special attention the G-20 leaders and the FSB are...London, U.K.— FIA’s President and CEO Walt Lukken today gave opening remarks at FIA’s International Derivatives Expo. Remarks are prepared for delivery: Welcome to FIA’s 12th...FIA has submitted an amicus brief to the U.S. District Court for the Northern District of Illinois in a case that will decide the permissible venues for the arbitration of futures trading disputes... FIA Speaks features CFTC Chairman Giancarlo as the guest for Episode #1; New Episodes Coming Soon Washington, DC – FIA today launched FIA Speaks—a podcast to provide...
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FINRA and the SEC’s Office of Investor Education and Advocacy are issuing this Investor Alert to inform investors about social sentiment investing tools and highlight their risks. This Alert provides tips to consider before using tools that analyze or aggregate information from social media sources to make investment decisions or attempt to predict changes in the stock market’s direction or in the price of a security. […]
FINRA is aware of a recent scheme that involved an unregistered individual impersonating a registered investment professional to lure in potential investors. This scammer created a fake version of a public FINRA BrokerCheck® report of a legitimate broker—picking an experienced broker with a spotless regulatory record. […]