Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: Derivatives

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ISDA Publishes Initial Margin Implementation Guidance for Financial End Users

Posted in Derivatives
On May 29, the International Swaps and Derivatives Association (ISDA) issued calculation guidance for swap market participants seeking to determine if they might become subject in 2020 to mandatory initial margin requirements for swaps executed with swap dealers registered with the Commodity Futures Trading Commission. Under both the CFTC margin rules and the margin rules… Continue Reading

FINRA Proposes Rule to Extend the Implementation of Rule Related to Margin Requirements for Credit Default Swaps

Posted in Broker-Dealer, Derivatives
On May 21, the Financial Industry Regulatory Authority (FINRA) filed with the Securities and Exchange Commission a proposed rule (Rule Change) extending the implementation date for FINRA Rule 4240, which implements an interim pilot program with respect to margin requirements for certain transactions in credit default swaps that are security-based swaps. The implementation date has… Continue Reading

CFTC and SEC Participate in the Signing Ceremony for the IOSCO Enhanced Multilateral MOU Concerning Cross-Border Enforcement

Posted in CFTC, Derivatives
At the 44th Annual International Organization of Securities Commissions (IOSCO) Conference in Sydney, Australia, the Chairmen of the Commodity Futures Trading Commission and the Securities and Exchange Commission took part in a signing ceremony on May 15 for the IOSCO Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (EMMoU).… Continue Reading

Proposed Amendments to NFA Bylaw 1301 Regarding the Schedule of Dues and Assessments

Posted in CFTC, Derivatives
On May 21, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to NFA Bylaw 1301 regarding the schedule of dues and assessments for swaps firms. NFA Bylaw 1301 imposes dues and assessments on futures commission merchants (FCM) (for which NFA is the designated self-regulatory organization (DSRO)), introducing brokers (IB),… Continue Reading

Joint Audit Committee Releases Two Regulatory Alerts

Posted in CFTC, Derivatives
On May 14, the Joint Audit Committee (JAC), a representative committee of US futures exchanges and the National Futures Association (NFA), released two regulatory alerts of particular importance to futures commission merchants (FCMs) that clear for customers whose accounts are managed by third-party advisers. The regulatory alerts “reconfirm and reiterate” the JAC’s view of existing… Continue Reading

CFTC Chair Proposes Relief for Phase 5 Initial Margin Implementation

Posted in CFTC, Derivatives, Dodd-Frank Developments
On April 29, Commodity Futures Trading Commission Chairman Chris Giancarlo sent a letter to Randy Quarles, the Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, in which he proposed that the US regulators responsible for the administering the margin rules for uncleared swaps should collaborate in providing some relief… Continue Reading

CFTC Approves Proposed Rule Regarding Certain Swap Data Repository and Data Reporting Requirements

Posted in CFTC, Derivatives
On April 25, the Commodity Futures Trading Commission approved a proposed rule intended to improve the quality of swap data and update and streamline regulations related to the operations and governance of swap data repositories (SDRs) (Rule Proposal). Among other items, the Rule Proposal is intended to update requirements related to the following: 1) the… Continue Reading

CFTC Proposes Amendments to DCO Regulations

Posted in CFTC, Derivatives
On April 29, the Commodity Futures Trading Commission proposed a series of amendments to regulations that apply to derivatives clearing organizations (DCOs) under Part 39 of the CFTC’s regulations, which implements the statutory core principles for DCOs (Rule Proposal). The Rule Proposal is intended, among other things, to streamline the DCO registration and reporting process,… Continue Reading

CFTC’s Division of Clearing and Risk and Office of the Chief Economist Issue Clearinghouse Supervisory Stress Test Report

Posted in CFTC, Derivatives
On May 1, the Commodity Futures Trading Commission’s Division of Clearing and Risk and Office of the Chief Economist jointly issued, CCP Supervisory Street Tests: Reverse Stress Test and Liquidation Stress Test (Stress Test), which is a two-part report covering the results of 1) a reverse stress test of central counterparties (CCPs) or clearinghouses resources;… Continue Reading

CFTC Approves Final Rule Providing Exception to Annual Privacy Notice Requirements

Posted in CFTC, Derivatives
On April 19, the Commodity Futures Trading Commission approved a final rule revising CFTC Regulation 160.5. The amended rule implements the Fixing America’s Surface Transportation Act’s (FAST Act) December 2015 statutory amendment to the Gramm-Leach-Bliley Act (GLB Act) by providing an exception to the requirement that certain futures commission merchants, retail foreign exchange dealers, commodity… Continue Reading

CFTC to Hold an Open Commission Meeting on April 23

Posted in Brexit, CFTC, Derivatives
The Commodity Futures Trading Commission will host an open meeting at 10:00 a.m. on Tuesday, April 23, at which it expects to cover the following topics: notice of proposed rulemaking regarding amendments to regulations on certain swap data depository and swap data reporting requirements; notice of proposed rulemaking regarding amendments to derivatives clearing organization general… Continue Reading

FCA and SEC Sign Updated Memoranda of Understanding

Posted in Brexit, Brexit/UK Developments, Derivatives, Financial Markets, SEC/Corporate, UK Developments
On March 29, the UK Financial Conduct Authority (FCA) issued a press release announcing that it has signed two updated memoranda of understanding (MOUs) with the Securities and Exchange Commission. Both MOUs aim to ensure the continued ability of the United Kingdom and the United States to cooperate and consult with each other regarding the… Continue Reading

CFTC Passes Provision to Provide Greater Brexit-Related Market Certainty by Unanimous Vote

Posted in Brexit, CFTC, Derivatives
On May 25, the Commodity Futures Trading Commission adopted an interim final rule designed to provide greater certainty to the global marketplace in the event of a “no-deal Brexit.” In the event that the UK leaves the EU without a negotiated withdrawal agreement, affected swap dealers and major swap participants may be required to transfer… Continue Reading

CFTC Adopts Final Rule to Help Small Businesses and Job Creators in the US

Posted in CFTC, Derivatives
On March 25, the Commodity Futures Trading Commission adopted an amendment to the definition of a swap dealer found in CFTC Rule 1.3 to allow certain insured depository institutions (IDIs) to provide risk mitigating swaps to customers in connection with the origination of loans without counting the swaps towards their de minimis threshold. Under CFTC… Continue Reading

CFTC Unanimously Approves Rule Amendments to Ease Regulatory Burdens

Posted in CFTC, Derivatives
On March 28, the Commodity Futures Trading Commission announced that it has unanimously approved two final rule amendments designed to ease registrants’ regulatory burdens. Both final rule proposals originated from the CFTC’s Project KISS Initiative, which is intended to simplify and reduce burdens by revisiting our rules based on staff implementation experience and public comment.… Continue Reading

ESMA Updates Q&As on MiFID II and MiFIR Commodity Derivatives

Posted in Derivatives, EU Developments, Financial Markets
On March 27, the European Securities and Markets Association (ESMA) published an updated version of its questions and answers document (Q&As) on commodity derivatives topics under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The Q&As, were last updated on January 4, (as reported in the… Continue Reading

CFTC Announces Global Markets Advisory Committee Meeting

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission has announced that its Global Markets Advisory Committee (GMAC) will hold a meeting on April 15. The GMAC will hear presentations on how regulators are fulfilling the 2009 G20 directive regarding the OTC derivatives market. Specifically, the GMAC will examine the status of the four key pillars of the original… Continue Reading

CFTC Announces Energy and Environmental Markets Advisory Committee Meeting

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission has announced that its Energy and Environmental Markets Advisory Committee (EEMAC) will hold a meeting on April 17. The meeting will focus on the following three topics: derivatives markets’ responses to physical markets’ developments; exchange-traded energy derivatives markets; and the availability of clearing and other services in the energy derivatives… Continue Reading

ESMA Extends Its Register of Derivatives to be Traded On-Venue Under MiFIR

Posted in Derivatives, EU Developments, Financial Markets
On March 21, the European Securities and Markets Authority (ESMA) updated its public register of derivative contracts that are subject to the trading obligation under the Markets in Financial Instruments Regulation (MiFIR). ESMA’s update follows the authorization, on the same date, of additional trading venues where the classes of derivatives subject to the trading obligation… Continue Reading

CFTC and Monetary Authority of Singapore Issue Joint Statement Regarding the Mutual Recognition of Certain Derivatives Trading Venues in the United States and Singapore

Posted in CFTC, Derivatives
On March 13, the Commodity Futures Trading Commission and the Monetary Authority of Singapore (MAS) issued a joint statement announcing their mutual recognition of certain derivatives trading venues in the United States and Singapore. The CFTC issued an order exempting certain derivatives trading facilities regulated by the MAS from the registration requirements for swap execution… Continue Reading