Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: CFTC

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CFTC Extends Previously Granted No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives
On April 18, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No-Action Letter 17-22, which extends relief previously granted under CFTC No-Action Letter 17-05. CFTC No-Action Letter 17-05 allowed certain swap dealers to substitute compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the… Continue Reading

CFTC Seeks Comment on CME Petition for Order Permitting Commingling of Funds

Posted in CFTC
The Chicago Mercantile Exchange, Inc. (CME) has submitted to the Commodity Futures Trading Commission a petition for an order pursuant to Section 4d of the Commodity Exchange Act (CEA) whereby CME and its clearing members that are registered futures commission merchants would be permitted to hold, in accounts segregated in accordance with Section 4d of… Continue Reading

CFTC Grants Registration to NEX SEF Limited

Posted in CFTC, Derivatives
On April 20, the Commodity Futures Trading Commission announced that it had issued an Order of Registration to NEX SEF Limited (NEX) whereby NEX was granted registration status with the CFTC as a swap execution facility (SEF). In granting NEX’s application, the CFTC determined that NEX demonstrated compliance with the Commodity Exchange Act and CFTC… Continue Reading

NFA Issues Notice Regarding Updated FinCEN AML/CFTC Guidance

Posted in CFTC
On April 10, the National Futures Association (NFA) published Notice I-17-09, which notified member futures commission merchants (FCMs) and introducing brokers (IBs) of an April 5 advisory published by the Financial Crimes Enforcement Network (FinCEN), regarding updates to the Financial Action Task Force’s list of jurisdictions with strategic anti-money laundering and combating the financing of… Continue Reading

CFTC Releases No-Action Letter Regarding the Transfer of Customer-Owned Securities by FCMs to Foreign Brokers

Posted in CFTC
On April 11, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediate Oversight (DSIO) made publicly available No-Action Letter No. 16-88. This letter grants no-action relief to a futures commission merchant (FCM) intending to deposit customer-owned securities in an individual client account (ISA) with a United Kingdom affiliate (Affiliate) for purposes of margining… Continue Reading

NFA Announces Cybersecurity Member Regulatory Workshop Sessions

Posted in CFTC
On April 12, the National Futures Association (NFA) announced two upcoming Member Regulatory Workshop sessions that will discuss members’ regulatory responsibilities regarding cybersecurity. NFA staff will provide updates on their cybersecurity examination findings, and a panel of experts will share best practices. The sessions will be held in New York on May 10 and in… Continue Reading

CFTC Grants No-Action Relief From CPO Registration for Managers of Endowment Assets

Posted in CFTC
On April 4, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DISO) granted no-action relief from registration as a commodity pool operator (CPO) to a management company and certain fund directors whose sole clients are funds established to manage the endowment of a state university (University) and certain of its affiliates.… Continue Reading

CFTC Staff Provides Relief Associated With Swap Trade Confirmations

Posted in CFTC, Derivatives
On March 24, the Commodity Futures Trading Commission’s Division of Market Oversight extended no-action relief relating to the recordkeeping and confirmation requirements in CFTC Regulations 37.6(b), 37.1000, 37.1001, 45.2, and 45.3(a). This relief applies only to uncleared swap transactions executed on or pursuant to the rules of a Swap Execution Facility (SEF) and is subject to… Continue Reading

CFTC Extends Public Comment Period for Swap Dealers and Major Swap Participants Minimum Capital Requirement Proposal

Posted in CFTC, Derivatives
On March 16, the Commodity Futures Trading Commission published in the Federal Register its decision to extend the public comment period for the proposed rules related to minimum capital requirements for swap dealers and major swap participants (Proposal). (For a more complete discussion of the Proposal, see the December 9, 2016 edition of Corporate &… Continue Reading

CFTC Provides Time-Limited Relief for Variation Margin and Minimum Transfer Amount Provisions

Posted in CFTC, Derivatives
On February 13, the Division of Swap Dealer and Intermediary Oversight (Division) of the Commodity Futures Trading Commission (CFTC) provided time-limited no-action relief for failure of a swap dealer (SD) that does not have a prudential regulator to comply with the CFTC’s variation margin requirements by the March 1 compliance date (March 1 Requirements). (There… Continue Reading

CFTC Provides Temporary No-Action Relief for Aggregation Notice Filings for Position Limits

Posted in CFTC
On February 6, the Division of Market Oversight (Division) of the Commodity Futures Trading Commission issued CFTC Letter No. 17-06, which provides time-limited no-action relief from the requirement that persons relying on certain aggregation exemptions from federal position limit levels must file notice with the CFTC. Specifically, the Division stated that it would not recommend… Continue Reading

CFTC Releases Time Limited No-Action Relief for Swap Dealers Complying With EU Requirements

Posted in CFTC, Derivatives, EU Developments
On February 1, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued No Action Letter 17-05, which allows certain swap dealers to substitute—for a limited period of time—compliance with the non-centrally cleared OTC derivative margin requirements applicable in the European Union (the “EU Rules”) for compliance with certain of the… Continue Reading

CFTC Staff Grants No-Action Relief From Residual Interest Withdrawal Restrictions

Posted in CFTC, Derivatives
On January 26, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued CFTC Letter No. 17-03, in which the Division authorized futures commission merchants (FCMs) that carry cleared swaps customer accounts to withdraw excess residual interest from the cleared swaps customer accounts prior to the time provided in CFTC Rule… Continue Reading

CFTC Extends Public Comment Period for Regulation AT Supplemental Proposal

Posted in CFTC
On January 26, the Commodity Futures Trading Commission published in the Federal Register its decision to extend the public comment period for the supplemental notice of proposed rulemaking for Regulation Automated Trading (Regulation AT) (the Supplement). (For a more complete discussion of the Supplement, see the November 11, 2016 edition of Corporate & Financial Weekly… Continue Reading

CFTC Grants Order to LCH

Posted in CFTC, Derivatives
On January 13, the Commodity Futures Trading Commission issued an order authorizing LCH.Clearnet Limited (LCH), a CFTC-registered derivatives clearing organization (DCO), and its clearing members that are registered futures commission merchants to: (1) commingle in a cleared swaps customer account customer money, securities and property used to margin, secure or guarantee both futures and foreign… Continue Reading

CFTC Proposes to Amend Access to Swap Data Requirements

Posted in CFTC, Derivatives
On January 13, the Commodity Futures Trading Commission approved for publication in the Federal Register proposed amendments to Part 49 of the CFTC’s regulations relating to access to swap data held by Swap Data Repositories (SDR). Among other revisions, the proposal: (1) eliminates the requirement that foreign and domestic authorities seeking access to SDR swap… Continue Reading

CFTC’s Enforcement Division Issues New Advisories on Cooperation

Posted in CFTC
On January 19, the Commodity Futures Trading Commission Division of Enforcement (“Division”) issued two new Enforcement Advisories outlining the factors the Division will consider in evaluating cooperation by individuals and companies in the Division’s investigations and enforcement actions. The advisory regarding companies updates an advisory last issued in 2007; the advisory regarding individuals is new.… Continue Reading

CFTC Proposes To Amend Recordkeeping Requirements

Posted in CFTC
On January 12, the Commodity Futures Trading Commission approved for publication in the Federal Register proposed amendments to Regulation 1.31, which contains the recordkeeping requirements under the Commodity Exchange Act and CFTC regulations. The CFTC proposes to eliminate certain outdated terms and provisions, add new definitions, and update language to reflect advances in information technology.… Continue Reading

NFA Issues Notice to Members Regarding CPO/CTA Exemption Affirmations

Posted in CFTC
On January 11, National Futures Association (NFA) issued Notice I-17-02, which reminds NFA members of their obligations with respect to commodity pool operators (CPOs) and commodity trading advisors (CTAs) exempt from registration. The Commodity Futures Trading Commission requires any person claiming an exemption from CPO registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion… Continue Reading

NFA Announces Effective Date for Forex Transactions Requirements

Posted in CFTC
The Commodity Futures Trading Commission recently approved National Futures Association’s (NFA) amendment to NFA Compliance Rule 2-36. The amendment requires forex dealer members to supply customers and NFA with certain transaction execution data upon customer request. More information about the amendment is available in the December 2 edition of the Corporate & Financial Weekly Digest.… Continue Reading

ICE Endex Receives FBOT Registration

Posted in CFTC
On January 11, the Commodity Futures Trading Commission announced that it had issued an Order granting ICE Endex Markets B.V. (ICE Endex) registration as a Foreign Board of Trade (FBOT). As an FBOT, ICE Endex may provide its members and other participants in the United States with direct access to its electronic order entry and… Continue Reading

CFTC Staff Issues Time-Limited No-Action Relief for Derivatives Clearing Organizations and Other Reporting Entities From Certain Obligations on Cleared Swap Reporting

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 19, 2016, the Division of Market Oversight (Division) of the Commodity Futures Trading Commission provided time-limited no-action relief from the swap data recordkeeping and reporting requirements for cleared swaps (cleared swaps rule) to which derivatives clearing organizations (DCOs) and reporting entities would otherwise have been subject on December 27, 2016. Subject to certain… Continue Reading

CFTC Staff Issues Time-Limited No-Action Relief for Entities Submitting Swaps for Clearing With Derivatives Clearing Organizations Acting Under Exemptive Orders or No-Action Relief

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 19, 2016, the Division of Market Oversight of the Commodity Futures Trading Commission announced time-limited no-action relief for entities submitting swaps for clearing by derivatives clearing organizations (DCOs) relying on a CFTC exemption order or no-action relief (Relief DCOs). Entities submitting such swaps for clearing are now relieved of the obligation to terminate… Continue Reading