Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: CFTC

CFTC Launches LabCFTC as Major FinTech Initiative

Posted in CFTC
On May 17, the Commodity Futures Trading Commission announced the creation of LabCFTC, a new initiative aimed at promoting responsible FinTech innovation to improve the quality, resiliency, and competitiveness of the markets the CFTC oversees. The core components of LabCFTC are: (1) GuidePoint, which will serve as a dedicated point of contact for FinTech innovators… Continue Reading

CFTC Issues Guidance on the Calculation of Projected Operating Costs by DCMs and SEFs

Posted in CFTC
On April 28, the Commodity Futures Trading Commission issued guidance on the calculation by designated contract markets (DCMs) and swap execution facilities (SEFs) of projected operating costs for purposes of complying with DCM Core Principle 21 and CFTC Regulation 38.1101(c), and SEF Core Principle 13 and CFTC Regulation 37.1303.… Continue Reading

CFTC Proposes Amendments to Certain Rules Governing CCO Duties and Annual Reports

Posted in CFTC
On May 3, the Commodity Futures Trading Commission announced proposed rules amending its regulations regarding certain duties of chief compliance officers (CCOs) of swap dealers (SDs), major swap participants (MSPs) and futures commission merchants (FCMs; each, a Registrant). In addition, the proposed rules amend certain requirements for preparing and furnishing CCO annual reports on a… Continue Reading

CFTC Requests Public Input on Simplifying Rules

Posted in CFTC
On May 3, the Commodity Futures Trading Commission voted to seek comment from interested parties on applying CFTC’s regulations in simpler and less burdensome ways. The request for comment relates to the CFTC’s Project KISS, which stands for “Keep It Simple, Stupid.” In announcing the project, CFTC Acting Chairman J. Christopher Giancarlo noted that the… Continue Reading

CFTC Extends Relief to CTAs With Third-Party Recordkeepers

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) has issued exemptive relief to commodity trading advisors (CTAs) from the requirement to keep records under CFTC Regulations 4.7(c)(2) and 4.33 at the CTA’s main business office. As provided in the exemptive letter, a CTA may use a third-party recordkeeper so long… Continue Reading

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

EU and Prudential Regulators Issue Statements on March 1 Compliance With Swap Margin Rules

Posted in Banking, Derivatives, Dodd-Frank Developments
Lacking the ability to issue formal no-action relief from strict compliance with the variation margin rules for uncleared swaps coming into effect on March 1, the Board of Governors of the Federal Reserve System, the Office of Comptroller of the Currency (OCC) and the European Supervisory Authorities (ESA) have each issued statements suggesting that they… 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