Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Dodd-Frank Developments

ISDA To Publish T+2 Protocol

Posted in Derivatives, Dodd-Frank Developments
On September 5, the regular settlement cycle for most securities transactions in the United States will change from three days (T+3) to two days (T+2). In order to assist derivative market participants that have existing equity derivative transactions with payment dates based on T+3, the International Swaps and Derivatives Association (ISDA) has developed the 2017… Continue Reading

CFPB Requests Information Regarding the Small Business Lending Market

Posted in Banking, Dodd-Frank Developments
On May 10, the Consumer Financial Protection Bureau (CFPB) held a field hearing and issued a notice and request for information related to the small business lending market. Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Equal Credit Opportunity Act to require “financial institutions” (as defined in Section 1071)… 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

Acting SEC Chair Directs Staff to Reconsider Pay Ratio Disclosure Rule

Posted in Dodd-Frank Developments, SEC/Corporate
On February 6, the acting Securities and Exchange Commission Chairman, Michael Piwowar, issued a statement soliciting public comment on “unexpected challenges” that issuers have experienced in anticipation of complying with the pay ratio disclosure rule and directing the SEC staff to reconsider the implementation of the rule. The pay ratio disclosure rule, adopted to implement… Continue Reading

Acting SEC Chair Directs Staff to Reconsider Rule on Conflict Minerals

Posted in SEC/Corporate
On January 31, the acting Securities and Exchange Commission Chairman, Michael Piwowar, issued a statement announcing that he directed the staff of the SEC to reconsider the rule on conflict minerals, including the agency’s 2014 guidance on such rule. As discussed in the August 24, 2012 edition of the Corporate & Financial Weekly Digest, the… Continue Reading

CFTC Chairman Proposes Extension of Phase-In De Minimis Amount Termination Date

Posted in CFTC, Derivatives, Dodd-Frank Developments
Under Title VII of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank), dealers who execute a notional amount of swaps that exceeds a de minimis threshold must register with the Commodity Futures Trading Commission. That threshold is currently $8 billion as a phase-in matter, but in accordance with CFTC Regulation 1.3(ggg)(4)(ii)(A), it is scheduled… Continue Reading

Banking Regulators Issue Dodd-Frank Report on Bank Activities and Investments

Posted in Banking, Dodd-Frank Developments
On September 8, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) issued a report (Report) that they were required to prepare pursuant to section 620 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank). The primary… Continue Reading

CFTC Proposes to Amend the Timing for Filing Chief Compliance Officer Annual Reports by Certain Registrants

Posted in CFTC, Derivatives, Dodd-Frank Developments
On August 9, the Commodity Futures Trading Commission announced that it is proposing amendments to CFTC Regulation 3.3 to codify and supersede no-action relief previously granted in CFTC Staff Letter No. 15-15, issued March 27, 2015, with respect to the date by which the Chief Compliance Officer (CCO) of each futures commission merchant, swap dealer… Continue Reading

Consumer Financial Protection Bureau Releases Proposed Payday Rules

Posted in Banking, Dodd-Frank Developments
On Thursday, June 2, the Consumer Financial Protection Bureau (CFPB) released proposed rules affecting the payday and short-term loan industry as part of its authority to prohibit the use of unfair or abusive acts and practices in connection with the provision of consumer financial products and services under the Dodd-Frank Wall Street Reform and Consumer… Continue Reading

SEC Releases Target Dates for Proposed and Final Rulemaking

Posted in Derivatives, Dodd-Frank Developments, SEC/Corporate
The Securities and Exchange Commission recently published its agenda with respect to upcoming rulemaking, including rulemaking contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. In setting its agenda, the SEC established target dates for taking various rulemaking actions, including setting an April 2017 target for the following measures:… Continue Reading

CFTC Adopts Final Rule for Cross-Border Application of Swap Margin Requirements

Posted in CFTC, Derivatives, Dodd-Frank Developments
On May 24, the Commodity Futures Trading Commission adopted by a 2-1 vote a final rule that specifies how the CFTC’s margin rules for uncleared swaps (adopted late last year and published on January 6, 2016) (the “Margin Rules”) apply to swaps involving counterparties from jurisdictions other than the United States. In general, the CFTC… Continue Reading

ISDA Launches Protocol Regarding Cross-Border Enforceability of Stays on Contractual Termination Rights

Posted in Derivatives, Dodd-Frank Developments
On May 5, the International Swaps and Derivatives Association, Inc. (ISDA) launched the ISDA Resolution Stay Jurisdictional Modular Protocol (Protocol), which is designed to assist market participants in complying with new regulations governing the cross-border enforceability of stays on contractual termination rights. The Protocol was developed in reaction to new regulatory changes, such as a… Continue Reading

Consumer Financial Protection Bureau To Outlaw Mandatory Pre-Dispute Arbitration Provisions

Posted in Banking, Dodd-Frank Developments
On May 5, the Consumer Financial Protection Bureau (Bureau) issued a proposed rule that would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action… Continue Reading

Federal Reserve Board Proposes Restrictions on Qualified Financial Contracts Used by Systemically Important Banking Organizations

Posted in Banking, Dodd-Frank Developments
On May 3, the Board of Governors of the Federal Reserve System (Board) reviewed a draft rule proposal that would require any US bank holding company identified as a global systemically important banking organization (GSIB), its subsidiaries and the US operations of any foreign GSIB (Covered Entities) to comply with new restrictions regarding non-cleared qualified… Continue Reading

SEC Adopts Business Conduct Rules and Chief Compliance Officer Requirements for Swap Dealers and Major Security-Based Swap Participants

Posted in Derivatives, Dodd-Frank Developments, SEC/Corporate
On April 13, the Securities and Exchange Commission voted to adopt final rules (the “Final Rules”) implementing business conduct standards and chief compliance officer requirements for security-based swap dealers and major security-based swap participants (collectively, “Swap Entities”). Authority for the SEC to adopt the Final Rules is grounded in Title VII of the Dodd-Frank Wall… Continue Reading

Financial Regulatory Agencies to Issue New Proposed Compensation Rules

Posted in Banking, Dodd-Frank Developments
On April 21, the National Credit Union Administration issued proposed prototype regulations with other financial institution regulatory agencies (Agencies) to likely follow suit. Required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Act), the rule is intended to (1) prohibit incentive-based payment arrangements that the Agencies determine encourage inappropriate risks by certain financial… Continue Reading

NFA Issues Notice Regarding the Approval Process for New Margin Models Used by Covered Swap Entities

Posted in Antitrust, CFTC, Derivatives, Dodd-Frank Developments
On April 14, National Futures Association (NFA) issued Notice I-16-03, which provides further details regarding NFA’s review and approval process for margin models used by swap dealers and major swap participants that are not subject to the oversight of a prudential regulator (Covered Swap Entities). To comply with Commodity Futures Trading Commission margin rules, Covered… Continue Reading

Federal Reserve Board Proposes Enhanced Single-Counterparty Credit Limits for Large Banks

Posted in Banking, Dodd-Frank Developments
On March 4, the Federal Reserve Board (FRB) announced a re-proposal of rules that set single-counterparty credit limits for domestic and foreign bank holding companies with total consolidated assets of $50 billion or more. Prior versions of the rules, which will implement Section 165(e) of the Dodd-Frank Act, were proposed in 2011 and 2012.… Continue Reading

NFA To Review Initial Margin Models for SDs and MSPs

Posted in CFTC, Derivatives, Dodd-Frank Developments
National Futures Association (NFA) has issued a notice reminding its swap dealer (SD) and major swap participant (MSP) members of their obligations under the new uncleared swap margin requirements adopted by the Commodity Futures Trading Commission. Under the CFTC’s new margin rules, SDs and MSPs that are not subject to oversight by a prudential regulator… Continue Reading

NFA Issues Notice Regarding Cybersecurity Self-Examination Questionnaire

Posted in CFTC, Derivatives, Dodd-Frank Developments
On February 29, National Futures Association (NFA) issued Interpretive Notice I-16-10, which notifies member firms about the addition of a cybersecurity section to NFA’s Self-Examination Questionnaire. This section is designed to help assist member firms in complying with NFA’s Interpretive Notice to NFA Compliance Rules 2-9, 2-36 and 2-49 entitled Information Systems Security Programs (Notice).… Continue Reading

CFPB Issues Final Policy on No-Action Letters

Posted in Banking, Derivatives, Dodd-Frank Developments
The Consumer Financial Protection Bureau (Bureau) issued its final policy on its issuance of no-action letters on February 18, which is intended to further objectives under section 1021 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Under the Policy, Bureau staff would, “in its discretion, issue no-action letters (NALs)… Continue Reading