Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

CFTC and UK Financial Conduct Authority Sign Cooperation Arrangement on Financial Technology Innovation

Posted in CFTC, Digital Assets and Virtual Currencies, UK Developments

On February 19, the Commodity Futures Trading Commission and the UK Financial Conduct Authority (FCA) signed the “Cooperation Arrangement on Financial Technology Innovation,” which memorializes the intention of the CFTC and FCA to collaborate and support their respective financial technology (FinTech) initiatives—LabCFTC and FCA Innovate. The arrangement intends to support these FinTech initiatives through an information-sharing arrangement focused on FinTech market trends and developments. In addition, the arrangement, among other things, intends to facilitate referrals of FinTech companies that are interested in entering the others’ market.

The text of the arrangement is available here.

For more information, see “FCA and CFTC Enter Into Cooperation Agreement on FinTech” in the UK Developments section.


CFTC Extends Time-Limited No-Action Relief for Entities Submitting Swaps for Clearing With Certain DCOs

Posted in CFTC, Derivatives

On February 20, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) published Staff Letter 18-03, which extends the time-limited no-action relief provided in Staff Letter 16-85 for entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under (1) exemptive orders issued by the CFTC; or (2) no-action relief granted by the CFTC’s Division of Clearing and Risk (Relief DCOs). (For a complete discussion of the relief provided by Staff Letter 16-85, please refer to the January 6, 2017 edition of Corporate & Financial Weekly Digest). Continue Reading

Supreme Court Limits Scope of Dodd-Frank Whistleblower Protections

Posted in Derivatives, Dodd-Frank Developments, Litigation, SEC/Corporate

On February 21, the US Supreme Court decided Digital Realty Trust, Inc. v. Somers (583 U.S. ____ (2018)), which resolved a circuit split related to whether the anti-retaliation provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 124 Stat. 1376 (Dodd-Frank) extend to individuals who have not reported a securities law violation to the Securities and Exchange Commission and, therefore, falls outside of Dodd-Frank’s definition of a “whistleblower.” Continue Reading

FCA and CFTC Enter Into Cooperation Agreement on FinTech

Posted in CFTC, Digital Assets and Virtual Currencies, UK Developments

On February 19, the UK’s Financial Conduct Authority (FCA) and the United States Commodity Futures Trading Commission (CFTC) (collectively the Regulators) published a press release announcing that they have signed a Cooperation Agreement on the same date with each other on financial technology (FinTech) innovation. Continue Reading

FCA Publishes “Dear CEO” Letter on Quality of Prudential Regulatory Returns

Posted in Financial Markets, UK Developments

On February 19, the UK’s Financial Conduct Authority (FCA) published a “Dear CEO” letter that it recently sent to IFPRU investment firms and BIPRU firms (as defined below) concerning the quality of information submitted to the FCA in prudential regulatory returns. Continue Reading

SEC Proposes Budget for Fiscal Year 2019

Posted in SEC/Corporate

On February 12, the Securities and Exchange Commission issued a press release announcing its budget request for fiscal year 2019, which represents a 3.5 percent increase over the SEC’s fiscal year 2018 budget request. In its press release, the SEC emphasized that its budget request reflects funding increases for enhancements to their “cybersecurity capabilities, risk and data analysis, enforcement and examinations, and automation of business processes,” noting the need to keep up with significant advances in technology in the areas that it regulates.

The SEC’s press release is available here, and the SEC’s fiscal year 2019 budget request is available here.


FINRA Issues Regulatory Notice Regarding Extension of Time Requests Relating to FINRA Rule 4210

Posted in Broker-Dealer

On February 14, the Financial Industry Regulatory Authority (FINRA) published a Regulatory Notice stating that it is updating the Regulatory Extension (REX) system to include increased functionality that will assist FINRA member firms in requesting extensions of time related to FINRA Rule 4210. This will include requests for extensions of time in connection with the margin requirements for Covered Agency Transactions that will become effective on June 25. Continue Reading

CFTC Issues Interim Final Rule To Reorder and Alphabetize Definition Regulation

Posted in CFTC

On February 15, the Commodity Futures Trading Commission published and requested comment on an interim final rule to amend the CFTC’s primary definition regulation in an attempt to make such regulation user-friendly. Specifically, the CFTC amended Regulation 1.3 to remove lettered paragraphs and reorder defined terms in alphabetical order. Related cross-references to Regulation 1.3 in other CFTC regulations were revised to remove references to the lettered paragraphs.

Comments on the interim final rule must be submitted to the CFTC by March 17.

The interim final rule is available here.


CFTC Issues Order of Registration to ICE Futures Singapore

Posted in CFTC

On February 12, the Commodity Futures Trading Commission issued an Order of Registration (Order) granting ICE Futures Singapore Pte. Ltd. (ICEFS) registration as a foreign board of trade. The Order permits ICEFS to provide its identified members and other participants located in the United States with direct access to its electronic order entry and trade matching system. The Order is subject to continued compliance by ICEFS with the regulatory supervision of the Monetary Authority of Singapore.

The CFTC reserved the right to condition, modify, suspend, terminate or otherwise restrict the terms of the Order in the future.

The Order of Registration is available here.


FCA Publishes Report on Algorithmic Trading

Posted in UK Developments

On February 12, the UK Financial Conduct Authority (FCA) published a report on algorithmic trading compliance in wholesale markets. The report highlights key requirements in the revised Markets in Financial Instruments Directive (MiFID II) relating to algorithmic trading activity, and contains examples of good and bad practices observed during the FCA’s reviews of FCA regulated firms. Continue Reading