Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Dodd-Frank

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 Re-Proposes Minimum Capital Requirements for Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 2, the Commodity Futures Trading Commission re-proposed minimum capital requirements for swap dealers (SDs) and major swap participants (MSPs) that are not subject to prudential regulation (Covered Entities). The CFTC had initially proposed capital rules for Covered Entities in 2011 but deferred further action pending finalization and implementation of uncleared swaps margin requirements.… Continue Reading

CFTC Releases Results of ICE Futures U.S. Rule Enforcement Review

Posted in CFTC, Derivatives, Dodd-Frank Developments
On December 7, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) announced the results of its rule enforcement review of ICE Futures U.S. The review covered a one-year target period and evaluated ICE’s compliance with Designated Contract Core Principles 2 (Compliance With Rules) and 12 (Protection of Markets and Market Participants).… 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 Finalizes System Safeguards Testing Requirements

Posted in CFTC, Derivatives, Dodd-Frank Developments
On September 8, the Commodity Futures Trading Commission approved amendments to its rules relating to system safeguards for derivatives clearing organizations, designated contract markets, swap execution facilities and swap data repositories (collectively, registered entities). The rules clarify existing obligations and enhance cybersecurity testing requirements.… Continue Reading

CFTC Extends Relief for Non-US Swap Dealers From Transaction-Level Requirements

Posted in CFTC, Derivatives, Dodd-Frank Developments
On August 4, the Division of Swap Dealer and Intermediary Oversight, Division of Clearing and Risk and Division of Market Oversight of the Commodity Futures Trading Commission extended no-action relief (Relief) from certain transaction-level requirements previously granted to certain non-US swap dealers (SDs). Transaction-level requirements include: (1) required clearing and swap processing; (2) mandatory trade… Continue Reading

Lehman Brothers Court Holds Swap Safe Harbor Protects ‘Flip’ Transactions

Posted in Derivatives, Dodd-Frank Developments
The bankruptcy court overseeing the Lehman Brothers chapter 11 cases rejected efforts by Lehman Brothers Special Financing Inc. (LBSF) to recover roughly $1 billion in payments made to numerous noteholder defendants from the liquidation of collateral originally pledged to secure both obligations under notes issued by special purpose entities and credit default swap (CDS) obligations… Continue Reading

CFTC Issues Advisory Regarding Suspicious Activity Reporting and Economic Sanctions Programs

Posted in CFTC, Derivatives, Dodd-Frank Developments
On July 6, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) published Staff Advisory No. 16-60 (Advisory), which reminds futures commission merchants (FCMs) and introducing brokers (IBs) of their obligations to report certain kinds of suspicious activities.… Continue Reading

CFTC Approves Clear Markets North America, Inc. as a Registered Swap Execution Facility

Posted in CFTC, Derivatives, Dodd-Frank Developments
On June 27, the Commodity Futures Trading Commission issued an Order of Registration (Order) approving Clear Markets North America, Inc. as a fully registered Swap Execution Facility (SEF). After reviewing Clear Markets’ application, the CFTC determined that Clear Markets is in compliance with the Commodity Exchange Act (CEA) and the CFTC’s regulations applicable to SEFs.… Continue Reading

SEC Adopts Trade Acknowledgement and Verification Rules for Security-Based Swaps

Posted in Broker-Dealer, Derivatives, Dodd-Frank Developments
On June 8, the Securities and Exchange Commission announced the adoption of the Securities Exchange Act of 1934 (Exchange Act) Rules 15Fi-1 and 15Fi-2, which establish new trade acknowledgement and verification requirements for security-based swap (SBS) entities entering into SBS transactions.… Continue Reading

CFTC Proposes Additional Interest Rate Swaps for Clearing Requirement

Posted in CFTC, Derivatives, Dodd-Frank Developments
The Commodity Futures Trading Commission is proposing to add certain interest rate swaps in nine new currencies to the list of interest rate swaps and related products that are currently subject to mandatory clearing—so these additional swaps also will be subject to mandatory Swap Execution Facility (SEF) or Designated Contract Market (DCM) trading once they… 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