On December 3, the National Futures Association (NFA) proposed amendments to various NFA Compliance Rules and Interpretive Notices related to discretionary customer accounts, customer information, risk disclosures and bunched orders to apply to cleared swaps, in addition to other minor amendments. Most notably, NFA proposal would amend the following: Continue Reading NFA Proposes Amendments to Several NFA Rules and Interpretative Notices to Apply to Cleared Swaps

The Financial Industry Regulatory Authority (FINRA) previously announced an expansion to its ongoing transparency initiative for the over-the-counter (OTC) equity market. This expansion entails FINRA publishing new data about OTC trading volume occurring outside of alternative trading systems (ATSs).

As of December 2, FINRA began publishing the following types of data: 1) monthly aggregate block-size trading data for OTC trades in National Market System (NMS) stocks executed outside an ATS, on a one-month delayed basis; and 2) aggregate non-ATS volume for each member firm (by eliminating the de minimis exception for member firms executing fewer than, on average, 200 non-ATS transactions per day during an applicable reporting period). Continue Reading FINRA Expands Transparency Initiative Related to OTC Equity Trading Volume

On December 4, the Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission (CFTC) issued an advisory addressing the preparation of the Chief Compliance Officer (CCO) Annual Report for futures commission merchants, swap dealers and major swap participants. The CFTC advisory discusses a number of common deficiencies that the staff has identified in its review of the 2019 CCO Annual Reports and provides additional guidance to Registrants regarding the requirements of the CCO Annual Report in light of the deficiencies found. Continue Reading CFTC Issues Guidance on Chief Compliance Officer Annual Report Preparation

The Commodity Futures Trading Commission (CFTC) will hold an open meeting on December 10 at 9:00 a.m. Eastern to cover the following topics:

  • Proposed Rule: Capital Requirements for Swap Dealers and Major Swap Participants – Reopening the Comment Period and Requesting Additional Comment
  • Proposed Rule: Amendments to the Swap Clearing Requirement Exemption for Inter-Affiliate Swaps
  • Proposed Rule: Settlements in Administrative and Civil Proceedings
  • Final Rule: Amendments to Part 13 of the Commission’s Regulations (Public Rulemaking Procedures)

The meeting will take place at the CFTC headquarters in Washington, DC, and a live webcast will be offered. More information is available here.

On December 2, the Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) announced that it will hold a public meeting at the CFTC headquarters in Washington, DC on December 11 at 9:30 a.m. Eastern. At the meeting, MRAC will receive status reports from its Climate-Related Market Risk, Central Counterparty Risk and Governance, Market Structure, and Interest Rate Benchmark Reform committees. There also will be a discussion regarding the transition from the London Inter-Bank Offered Rate (LIBOR) to alternative risk-free reference rates (RFRs), including the International Swaps and Derivatives Association’s (ISDA) recent consultation on the final parameters for the spread and term adjustments that will apply to RFRs if derivatives fallbacks are triggered. Comments in connection with the meeting must be submitted by December 18.

For details as to how to attend or listen to the meeting, please see the CFTC’s press release here.


On December 2, the National Futures Association (NFA) issued Notice I-19-29 reminding NFA members that any person claiming an exemption from commodity pool operator (CPO) registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from CPO registration under CFTC Regulation 4.5 or an exemption from commodity trading advisors (CTA) registration under 4.14(a)(8) must annually affirm the applicable notice of exemption within 60 days of the calendar year end, which is February 29, 2020 for this affirmation cycle. Failure to affirm will result in the exemption being withdrawn on March 1, 2020. The affirmation process can be completed through NFA’s online Exemption System.

The notice and more information on how to complete the affirmation process is available here.


On November 29, the National Futures Association (NFA) proposed an amendment to NFA Bylaw 1301(e) to reduce assessments for each order segment fee a Forex Dealer Member (FDM) submits to NFA’s Forex Transaction Reporting Execution Surveillance System (FORTRESS). Currently, each FDM is required to pay an assessment of $.004 on each order segment submitted to FORTRESS. NFA has proposed lowering the assessment to $.003, and such proposal may become effective as early as 10 days after receipt of the submission by the Commodity Futures Trading Commission (CFTC).

The NFA rule submission is available here.

On December 3, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB) and the National Credit Union Administration (the Banking Agencies) released interagency guidance related to the use of alternative data for purposes of underwriting credit (the Guidance). Continue Reading US Banking Agencies Issue Statement on Alternative Date in Credit Underwriting

On November 29, the UK’s Financial Conduct Authority (FCA) published a consultation paper on applying the Senior Managers Regime (SMR) to benchmark administrators. (For more information on the Senior Managers and Certification Regime, or SM&CR, please see the July 28, 2017 edition of the Corporate & Financial Weekly Digest.)

SM&CR already applies to banks and insurers, and will apply to most other UK financial services firms as of December 9. Because benchmark administrators only began to be supervised by the FCA in January 2018, the SMR will apply to them starting December 7, 2020. This gives these firms one extra year to prepare for the regime. Continue Reading SM&CR to Apply to Benchmark Administrators