In an open meeting, the CFTC invited regulators, exchanges, brokers, money managers, dealers, and academics to discuss ways and means to ensure customer collateral protection in the wake of the MF Global collapse.
The Commission and participants discussed proposed regulations, including keeping more client funds at clearing houses, requiring brokers to keep a buffer of excess customer funds on reserve, creating an insurance fund to reimburse clients who lose money in a default, and having broker chiefs sign off on large transfers of money that could potentially belong to clients.
Panel members were at odds over the rules’ efficiency, and failed to agree on deals for broadly popular ideas. For instance, members debated how often brokers should report customer fund investments, to provide transparency. The Futures Industry Association said it would prefer if brokers report investments monthly. CME Group said it was looking at a proposal for daily reports.
Panel members also quibbled over plans to safeguard customer money in over-the-counter swaps trading for futures. According to Reuters, Tom Hammond, president of ICE Clear US, said the commission and the industry would be “hard pressed” to explain why the OTC model for large hedge funds “can’t be applied to farmers, ranchers, and cotton growers in the U.S. if it adds extra protection and it’s cost effective.” Tim Doar, a CME Group Inc managing director, said he was not wholly convinced that the OTC model did protect customers. Others protected additional costs.
At an open meeting on July 11, the five members of the Commodity Futures Trading Commission voted unanimously to release a proposed rulemaking designed to create a less burdensome regulatory... Washington, D.C. – Today FIA announced that Tribeca Early Stage Partners will be a 2019 FIA Innovators Pavilion community partner , helping FIA connect with the fintech community in New York and...Each year FIA organizes an Innovators Pavilion at the annual Futures & Options Expo in Chicago to showcase fintech startups that are offering forward-thinking solutions for the global capital...FIA, jointly with ISDA and GFMA, responded to ESMA’s call for evidence in May on position limits under MiFID II. ESMA sought stakeholders’ input as it launched this call for evidence in the... Both the House and Senate Agriculture committees heard from industry participants in a pair of congressional hearings about the derivatives industry. FIA President and CEO Walt Lukken... Washington, DC -- FIA today launched the fifth annual Innovators Pavilion competition for fintech startups that are offering forward-thinking solutions for the global derivatives markets....London, U.K.—FIA today published a new position paper that highlights the concerns of market participants with the current reporting framework for exchange traded derivatives (ETDs). Further, and...
(Feed generated with FetchRSS) […]
BIS press release on the presentation of the Annual Economic Report 2019, 30 June 2019. Monetary policy can no longer be the main engine of economic growth, and other policy drivers need to kick in to ensure the global economy achieves sustainable momentum, the Bank for International Settlements (BIS) writes in its Annual Economic Report. […]
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. […]