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.
FIA responded to both the CFTC and the SEC on ICE Clear Credit’s proposed rule amendments to allocate non-default losses for investment losses and custodial losses to clearing members.FIA and ISDA sent a joint comment letter today in response to the CFTC’s call to enhance the rules governing various aspects of the Core Principles applicable to derivatives clearing organizations...On 6 September, FIA submitted a response to ESMA to their consultation on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments. The...FIA is circulating this notice to inform FIA members that an important new set of template disclosures have been added to the FIA's online documentation library. On July 10, the Commodity...FIA’s commodities members wrote in support of the CFTC’s efforts to improve its swap data reporting rules and stressed the importance of the Commission and public having access to accurate and...FIA today submitted a comment letter in support of the CFTC and SEC’s effort to update, harmonize and simplify decades-old rules with respect to the minimum required margin to be collected by...On Aug. 5, FIA filed a comment letter with the U.S. Commodity Futures Trading Commission in response to the CFTC’s “Foreign Futures and Options Transactions” proposal. The proposal would codify...(Feed generated with FetchRSS) […]
The Board of Directors of the Bank for International Settlements (BIS) has appointed Ravi Menon as Chair of the BIS Asian Consultative Council (ACC) from 26 September 2019. Mr Menon is Managing Director of the Monetary Authority of Singapore. The term of appointment for the ACC Chairman is two years. (Press release, 18 September 2019) […]
Financial fraud routinely follows on the heels of disaster. Hurricanes and their aftermath are no exception. We are issuing this Alert to warn investors that investment scams may come your way touting stocks and other investments with the promise of huge gains in the wake of major hurricanes. […]
FINRA updated and is reissuing our 529 saving savings plan investor alert to highlight Jobs Act changes, and to remind investors to closely consider both their state of residency and the applicable fees—including fees associated with share classes—when making 529 investment decisions. […]
As an investor, you may have read about "Class A," "Class B," Class C", or other classes of mutual fund shares. If you are thinking about choosing one of these classes, it is important for you to understand the differences between them. FINRA regulates broker/dealers and their registered representatives, and we provide investors with information about securities products and services. […]
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. […]