Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: CFTC

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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… Continue Reading

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… Continue Reading

Conforming Amendments Proposed for Bank Swap Margin Rules

Posted in Banking, CFTC, Derivatives, Dodd-Frank Developments
On February 5, the Prudential Regulators—the five federal banking regulators for swap dealers that are banks—proposed technical amendments to their margin rules for uncleared swaps. The amendments aim to harmonize the definition of Eligible Master Netting Agreement (EMNA) in the margin rules with recent changes made to the definition of “Qualifying Master Netting Agreement” (QMNA)… Continue Reading

CFTC’s Market Risk Advisory Committee Releases Agenda for Upcoming Public Meeting

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission has released the agenda for the Market Risk Advisory Committee (MRAC) public meeting that will be held on January 31. The public meeting will feature four different panels, in addition to opening remarks from Rostin Behnam, MRAC Sponsor and Commissioner; J. Christopher Giancarlo, CFTC Chairman; and Brian D. Quintenz, a… Continue Reading

NFA Issues Notice of Additional Questions for CPOs on the Annual Pool Financial Statement

Posted in CFTC
On January 18, the National Futures Association (NFA) issued a Notice to inform commodity pool operators that two additional questions concerning virtual currency activities have been added to the cover page of the annual pool financial statement. The changes are effective for financial statements as of October 31, 2017 or later. NFA’s Notice I-18-03 is… Continue Reading

CFTC Approves Amendments to Commission Regulations Under Parts 3 and 9

Posted in CFTC, Derivatives
On January 9, the Commodity Futures Trading Commission announced it had unanimously approved final rules that update Parts 3 (Registration) and 9 (Review of Exchange Disciplinary, Access Denial or Other Adverse Actions). These updates integrate existing advisory guidance, incorporate swap execution facilities, and update provisions currently applicable to designated contract markets. The CFTC also approved… Continue Reading

CFTC Staff Issues No-Action Relief to Futures Commission Merchants and Introducing Brokers Regarding Capital Treatment of Deferred Tax Liabilities From Changes in Accounting Principles

Posted in CFTC, Derivatives
On January 5, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight issued a no-action letter authorizing registered futures commission merchants and introducing brokers to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Regulation 1.17. The tax… Continue Reading

NFA Issues Notice of the Effective Date of Amendments to NFA Compliance Rule 2-36: Requirements for Forex Transactions and NFA Compliance Rule 2-43: Forex Orders

Posted in CFTC
On January 11, the National Futures Association (NFA) issued a Notice that the amendments to NFA Compliance Rules 2-36 and 2-43 submitted to the Commodity Futures Trading Commission on December 4, 2017 (as reported in the December 8, 2017 edition of Corporate & Financial Weekly Digest) were approved. The amendments will apply to forex dealer… Continue Reading

NFA Issues Notice of Additional Reporting Requirements for CPOs and CTAs That Trade Virtual Currency Products and IBs that Solicit or Accept Orders in Virtual Currency Products

Posted in CFTC, Derivatives
On December 14, 2017, the National Futures Association (NFA) issued Notices regarding commodity pool operators (CPOs), commodity trading advisors (CTAs) and introducing brokers (IBs), outlining new reporting requirements for CPOs, CTAs and IBs that deal in virtual currencies.… Continue Reading

Filing Requirements for Swap Valuation Dispute Notices and Monthly Swap Dealer Risk Data Reporting Requirements are Effective January 2018

Posted in CFTC
On December 19, 2017, the National Futures Association (NFA) issued a reminder notice to its members regarding the upcoming effective dates for the submission of standardized data for swap valuation dispute notices (see Notice I-17-13) and monthly risk data reports (see notice I-17-10, as reported in the June 2, 2017, edition of Corporate and Financial… Continue Reading

CFTC Approves Exemption From SEF Registration Requirements for Multilateral Trading Facilities and Organized Trading Facilities Authorized Within the EU

Posted in CFTC, Derivatives
On December 8, in response to a request by the European Commission (EC), the Commodity Futures Trading Commission issued an order exempting certain multilateral trading facilities (MTFs) and organized trading facilities (OTFs) authorized within the European Union (EU) from the requirement to register with the CFTC as swap execution facilities (SEFs).… Continue Reading

CFTC Staff Issues Interpretive Guidance Clarifying Commodity Trading Advisor Registration Requirements Resulting from the European Union’s MiFID II Research Compensation Provisions for Investment Managers

Posted in CFTC, Derivatives
On December 11, at the request of the Futures Industry Association (FIA), the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued an interpretive letter regarding the “solely incidental” exclusion from registration as a commodity trading advisor (CTA). Under the relevant provisions of the Commodity Exchange Act and CFTC rules, a… Continue Reading

CFTC Requests Comment on Proposed Exemptive Order to Permit ICE Clear Credit, ICE Clear US and ICE Clear Europe to Invest Customer Funds in French and German Sovereign Debt

Posted in CFTC
On December 12, the Commodity Futures Trading Commission requested comment on a proposed exemptive order, pursuant to Section 4(c) of the Commodity Exchange Act (CEA), which would grant ICE Clear Credit, ICE Clear US and ICE Clear Europe (ICE DCOs) limited exemptions from Section 4d of the CEA and CFTC Rule 1.25. Subject to the… Continue Reading

CFTC Seeks Public Comment on Proposed Amendments to Chicago Mercantile Exchange Inc. Rules Regarding Direct Funding Participants

Posted in CFTC
On December 14, the Commodity Futures Trading Commission requested comment on proposed amendments submitted by the Chicago Mercantile Exchange Inc. (CME) under CFTC Regulation 40.10. The proposed amendments would create a new type of clearing membership, the “direct funding participant” (DFP). A DFP would be allowed to clear trades for its own account directly with… Continue Reading

NFA Proposes to Amend NFA Registration Rule 802

Posted in CFTC
On November 30, the National Futures Association (NFA) submitted proposed amendments to NFA Registration Rule 802 to the Commodity Futures Trading Commission. The amendment is intended to ensure the language of Rule 802 is consistent with that in recently amended registration forms. Specifically, the amendments reflect changes in the language of Forms 7-R; 8-R; and… Continue Reading

NFA Proposes to Amend NFA Compliance Rules 2-36 and 2-43

Posted in CFTC
On December 4, the National Futures Association (NFA) submitted proposed amendments to NFA Compliance Rule 2-36 and Rule 2-43 to the Commodity Futures Trading Commission. The amendment to NFA Compliance Rule 2-36 will require forex dealer members (FDM) to disclose to customers on a per-trade basis: (1) any commissions or other fees charged; (2) for… Continue Reading

CFTC Releases Rule Enforcement Review of the Chicago Board of Trade, Chicago Mercantile Exchange, Commodity Exchange, Inc. and New York Mercantile Exchange, Inc.

Posted in CFTC
On December 4, the Commodity Futures Trading Commission released a report of the results of its Division of Market Oversight’s (Division) Rule Enforcement Review of the Chicago Board of Trade, Chicago Mercantile Exchange, Commodity Exchange, Inc. and New York Mercantile Exchange, Inc. (collectively the CME Group).… Continue Reading

EU and CFTC Implement Mutual Recognition of Derivatives Trading Venues

Posted in CFTC, Derivatives, EU Developments, Financial Markets
As contemplated by announcements last month, the European Commission (EC) and the Commodity Futures Trading Commission (CFTC) took action this week to implement mutual recognition of derivatives trading venues in advance of the January 3, 2018 compliance date for the Markets in Financial Instruments Directive (MiFID II) requirement that the most liquid derivative instruments that… Continue Reading

CFTC Issues No-Action Letter Extending Swap Reporting Relief for Enumerated Jurisdictions

Posted in CFTC
On November 30, the Commodity Futures Trading Commission issued No-Action Letter (NAL) 17-64, which extends, for an additional three years, swap reporting relief originally granted to most swap dealers established under the laws of Australia, Canada, the European Union, Japan or Switzerland (collectively, the “Enumerated Jurisdictions”) by NAL 13-75 (December 20, 2013). The relief continues… Continue Reading

CFTC Extends No-Action Relief for Shanghai Clearing House

Posted in CFTC
The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) has extended no-action relief previously granted to the Shanghai Clearing House in May. The no-action relief provides that DCR will not recommend the CFTC take enforcement action against the Shanghai Clearing House for failure to register as a derivatives clearing organization (DCO) in light… Continue Reading

CFTC Provides Additional Time for Annual SEF Reports

Posted in CFTC
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) has issued relief to allow swap execution facilities (SEFs) an additional 30 days to prepare and submit their annual compliance reports and financial reports for the fourth quarter. As background, CFTC regulations require each SEF to file a financial report within 60 days after the… Continue Reading

NFA Issues Investor Advisory on Futures on Virtual Currencies

Posted in CFTC
Concurrent with the Commodity Futures Trading Commission’s statement regarding the expected launch of futures on virtual currencies by the Chicago Mercantile Exchange, the Chicago Board Options Exchange Futures Exchange and the Cantor Exchange, the National Futures Association (NFA) has issued an advisory cautioning investors that trading these products “involves a high level of risk and… Continue Reading

NFA Proposes To Amend Recordkeeping Requirements for Members Subject to Enhanced Supervisory Requirements

Posted in CFTC
The National Futures Association (NFA) has proposed amendments to its interpretive notice entitled “Compliance Rule 2-9: Enhanced Supervisory Requirements.” Specifically, the proposed amendments would require all members subject to enhanced supervisory requirements to maintain a record of all electronic written messages, including emails, text messages, instant messages, chat room discussions and other social media communications.… Continue Reading