Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

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CFTC Divisions Announce 2019 Examination Policies

Posted in CFTC, Derivatives

On February 12, the Commodity Futures Trading Commission announced 2019 Examination Priorities (the “Examination Priorities”) for registrants of the Division of Market Oversight (DMO), Division of Swap Dealer and Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). This marks the first time that the agency has published Examination Priorities for its divisions.… Continue Reading

CFTC Requests Public Comment on a Rule Amendment Certification Filing by ICE Futures U.S.

Posted in CFTC

The Commodity Futures Trading Commission is requesting public comment on a rule amendment certification filing by ICE Futures U.S., Inc. (IFUS). As described in the certification, the proposed amendment to IFUS Rule 4.26 would allow for the implementation of Passive Order Protection (POP) Functionality, which is intended to reduce latency advantages between traders engaged in… Continue Reading

CFTC Issues No-Action Relief From Certain Position Aggregation Requirements

Posted in CFTC

On December 21, 2018, the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission issued Letter 18-33 responding to a request for relief from compliance with certain position aggregation requirements under CFTC Regulation 150.4(b)(2)(i)(D). CFTC Regulation 150.4(b)(2) provides an owned-entity exemption from aggregation. Any person with an ownership or equity interest in an… Continue Reading

NFA Adopts Interpretive Notice Regarding CPO Internal Controls Systems

Posted in CFTC

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators with guidance on designing and implementing an adequate system of internal controls. On January 31, the NFA issued Notice I-19-03 announcing the recent adoption of… Continue Reading

CFTC Issues Request for Input on Crypto-Assets

Posted in CFTC, Digital Assets and Virtual Currencies

As part of its LabCFTC initiative, the Commodity Futures Trading Commission issued a Request for Input (RFI) to deepen the CFTC’s understanding of the technology, mechanics, and markets for Ether and its use on the Ethereum Network. In particular, the RFI seeks to understand similarities and distinctions between Ether and Bitcoin (as well as other… Continue Reading

NFA Proposes Interpretive Notice Regarding CPO Internal Controls Systems

Posted in CFTC

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators (CPOs) with guidance on designing and implementing an adequate system of internal controls. Specifically, the Interpretive Notice requires CPOs to implement an internal controls system… Continue Reading

NFA Proposes Amendments Incorporating Swaps into Compliance Rules and Interpretive Notices

Posted in CFTC, Derivatives

On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for review and approval proposed amendments to various NFA Compliance Rules and four NFA Interpretive Notices to incorporate swaps into these rules and notices. Specifically, the NFA proposal would amend the following Compliance Rules:… Continue Reading

CFTC Proposes To Amend Annual Privacy Notice Requirement

Posted in CFTC

The Commodity Futures Trading Commission has proposed to amend its regulations to eliminate the requirement for registered firms to provide annual privacy notices to their customers, under certain conditions, consistent with amendments made to the Gramm-Leach-Bliley Act in late 2015. If adopted, the proposed amendments would provide an exemption to registered futures commission merchants, retail… Continue Reading

CFTC Grants Exemption From SEF Registration to Four Additional MTFs

Posted in CFTC

The Commodity Futures Trading Commission has amended its order granting an exemption from swap execution facility (SEF) registration to include four additional multilateral trading facilities: Creditex Brokerage LLP; Currenex; FX Connect; and Thomson Reuters. The order, which was originally issued by the CFTC in December 2017 and discussed in the December 15, 2017 edition of… Continue Reading

NFA Proposes To Amend Interpretive Notice on Information Systems Security Programs

Posted in CFTC

National Futures Association (NFA) has proposed to amend its interpretive notice on information systems security programs (ISSPs) to further clarify each member’s obligations relating to its ISSP, including training, approval and incident reporting. With respect to ISSP training, the amended interpretive notice will require members to train their employees upon hiring and on at least… Continue Reading

CFTC’s LabCFTC Releases Primer on Smart Contracts

Posted in CFTC

On November 27, the Commodity Futures Trading Commission’s LabCFTC released “A CFTC Primer on Smart Contracts” to provide information on a variety of financial technology (FinTech) topics. LabCFTC is a hub designed for the CFTC to engage with the FinTech community. The primer defines a “smart contract” as “a set of coded computer functions” that… Continue Reading

CFTC Announces Agenda for Market Risk Advisory Committee Public Meeting

Posted in CFTC

The Commodity Futures Trading Commission has announced that its Market Risk Advisory Committee will hold a meeting on December 4. The meeting will be held at CFTC’s headquarters in Washington, DC beginning at 9:30 a.m. and is open to the public. The Committee will receive a report from the Interest Rate Benchmark Reform Subcommittee, followed… Continue Reading

CFTC Approves a Final Rule to Amend Uncleared Swap Margin Requirements

Posted in CFTC, Derivatives

On November 19, the Commodity Futures Trading Commission approved a final rule to amend its margin requirements for uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator (CFTC Margin Rule). As a part of the Project KISS initiative, the amendments were designed to harmonize the CFTC Margin Rule… Continue Reading

CFTC Takes Action on Rules Relating to Swaps and Swap Execution Facilities

Posted in CFTC

On November 5, the Commodity Futures Trading Commission held an open meeting to consider the following matters relating to swaps and swap execution facilities: Final Rule: Amending the De Minimis Exception to the Swap Dealer Definition Proposed Rule: Amendments to Regulations on Swap Execution Facilities and Trade Execution Requirement Request for Comment Regarding the Practice… Continue Reading

CFTC Issues No-Action Relief Regarding FCM’s Deposit of Customer-Owned Securities

Posted in CFTC

On October 31, the Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission issued Letter No. 18-26 to provide continuing relief to a futures commission merchant (FCM) from certain requirements regarding the holding of customer-owned securities as margin for trading on foreign futures and foreign options markets. This letter supersedes… Continue Reading

CFTC Approves Proposed Regulations for CPOs and CTAs

Posted in CFTC

On October 9, the Commodity Futures Trading Commission approved proposed rules intended to simplify regulations for commodity pool operators (CPOs) and commodity trading advisors (CTAs) generally by codifying existing staff advisory and no-action letter relief and streamlining registration requirements for CPOs that operate in multiple jurisdictions.… Continue Reading

CFTC Releases White Paper Addressing Cross-Border Swaps Regulation

Posted in CFTC

On October 1, Commodity Futures Trading Commission Chairman J. Christopher Giancarlo released a white paper addressing the regulation of cross-border swaps. The white paper, titled “Cross-Border Swaps Regulation Version 2.0: A Risk-Based Approach with Deference to Comparable Non-U.S. Regulation,” sets forth various proposed changes to the CFTC’s current cross-border approach.… Continue Reading

CFTC and Australian Securities Regulator Sign FinTech Cooperation Agreement

Posted in CFTC

The Commodity Futures Trading Commission and the Australian Securities and Investments Commission (ASIC) have entered into a cooperation arrangement on financial technology innovation. The arrangement is intended to facilitate cooperation and the sharing of information between the CFTC and ASIC relating to financial technology and the use of technology for purposes of regulation and oversight… Continue Reading

NFA Issues Notice on Calculating Financial Ratios on NFA Forms PQR and PR

Posted in CFTC

National Futures Association (NFA) has issued a notice to commodity pool operator (CPO) and commodity trading advisor (CTA) members clarifying the method by which CPOs and CTAs should calculate the Current Asset/Current Liability (CA/CL) ratios and the Total Revenue/Total Expenses (TR/TE) ratios for purposes of NFA Forms PQR and PR.… Continue Reading

FinCEN Issues Advisory on FATF-Identified Jurisdictions With AML/CFT Deficiencies

Posted in CFTC

The Financial Crimes Enforcement Network (FinCEN) issued an advisory to announce that the Financial Action Task Force (FATF) updated its list of jurisdictions with strategic anti-money laundering and combatting the financing of terrorism (AML/CFT) deficiencies. In the advisory, FATF has removed Iraq and Vanuatu from the list and added Pakistan to the list. The advisory… Continue Reading