Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

House Passes Bill H.R. 5405 “Promoting Job Creation and Reducing Small Business Burdens Act”

Posted in Dodd-Frank Developments, SEC/Corporate

On September 16, the House of Representatives passed H.R. 5405 “Promoting Job Creation and Reducing Small Business Burdens Act.” The bill addresses a number of Jumpstart Our Business Startups Act (JOBS Act)-related matters, and is also intended to make technical corrections to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill packaged 11 stand-alone bills, six of which had previously passed the House, into one piece of legislation. It is unclear if the bill will gain traction in the Senate before the completion of midterm elections this November. The full text of H.R. 5405 can be found hereContinue Reading

FINRA Board Approves Several Rulemaking Items Including Proposed Rule Changes Regarding Algorithmic Trading and Enhanced Transparency for OTC Transactions

Posted in Broker-Dealer

The Financial Industry Regulatory Authority, Inc. announced on September 19 that the FINRA Board of Governors (Board) approved several new rule initiatives. Among the initiatives, FINRA will seek comment from members on a rule proposal that would require registration of associated persons of member firms involved in the preparation of algorithmic strategies and those responsible for supervising such persons. The Board also authorized FINRA to issue a Regulatory Notice reminding firms of their existing supervisory obligations with regard to the development and deployment of algorithmic trading strategies. Continue Reading

CFTC Provides Time-Limited Relief to SEFs for Block Trades

Posted in CFTC, Derivatives, Dodd-Frank Developments

On September 19, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) provided time-limited no-action relief to swap execution facilities (SEFs) from the requirement in CFTC Regulation 43.2 that block trades occur away from the SEF’s trading system or platform. The no-action position was adopted in order to facilitate compliance with CFTC regulations regarding pre-execution screening and prompt clearing of transactions. Continue Reading

London Metal Exchange Provides Revised Guidance on Structure, Terminology and Order Execution

Posted in Derivatives

On September 22, the London Metal Exchange (LME) provided revised guidance on the structure of LME, market terminology and order execution. As with previous versions, the revised guidance explains that LME recognizes two types of contracts: client contracts between customers and certain types of LME members and exchange contracts between LME members. The guidance reminds LME members that all LME contracts are between parties acting as principals and that members cannot trade exchange contracts if a member is acting as an agent for a customer. The revised guidance also addresses different methods by which LME members may trade and describes several different order types on LME. Continue Reading

Think Tanks Ask Supreme Court to Clarify Definition of “Foreign Official” in FCPA

Posted in Litigation

Two think tanks, the Washington Legal Foundation and the Independence Institute, have filed an amicus brief in the Supreme Court on behalf of petitioners Joel Esquenazi and Carlos Rodriguez, who were recently convicted of violating the Foreign Corrupt Practices Act (FCPA). The amici seek clarity of the definition of “foreign official” in the FCPA.  Continue Reading

Update on ESMA Clearing Obligations for Credit Default Swaps

Posted in Derivatives, EU Developments, Financial Markets

On September 24, the European Securities and Markets Authority (ESMA) published on its website the public responses to its Consultation Paper on the draft regulatory standards (RTS) for Clearing Obligation No. 2 concerning credit default swaps (CDS). The consultation period closed on September 18. ESMA received nearly 30 responses from various industry participants.  Continue Reading

OECD Publishes Initial Recommendations on BEPS

Posted in EU Developments

On September 16, the Organisation of Economic Co-operation and Development (OECD) published a set of recommendations for a coordinated approach to fight tax avoidance by multinational enterprises under the Base Erosion and Profit Sharing (BEPS) project. The purpose behind these recommendations is to create a single set of international tax rules, or building blocks, which seek to end the practice of erosion of tax bases and the artificial shifting of profits to jurisdictions to avoid paying tax.  Continue Reading

Katten Launches New Bridging the Week Blog for Financial and Regulatory Updates

Posted in Financial Regulatory Blog

Katten is pleased to inform Corporate and Financial Weekly Digest subscribers that the firm has launched an additional financial services resource called Bridging the Week, a weekly blog authored by special counsel Gary DeWaal—both in written and video formats—that recaps and discusses top international financial and regulatory news in a concise, interesting and non-technical way. The blog is updated every Monday morning and is supplemented by periodic “Between Bridges” breaking news recaps. Articles are chosen based on Gary’s assessment of their relevance to businesspersons as well as legal and compliance personnel in financial services. Continue Reading