On April 13, the Securities and Exchange Commission voted to adopt final rules (the “Final Rules”) implementing business conduct standards and chief compliance officer requirements for security-based swap dealers and major security-based swap participants (collectively, “Swap Entities”). Authority for the SEC to adopt the Final Rules is grounded in Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Final Rules are the SEC equivalent for security-based swaps of the business conduct rules for swaps adopted by the Commodity Futures Trading Commission in 2012.
Continue Reading SEC Adopts Business Conduct Rules and Chief Compliance Officer Requirements for Swap Dealers and Major Security-Based Swap Participants

On February 10, the Commodity Futures Trading Commission and the European Commission (EC) announced that they had reached an agreement on a harmonized approach to central clearing counterparties (CCPs). The agreement ensures that EU market participants will be able to continue to use CFTC-registered CCPs without incurring substantial capital changes.
Continue Reading European Commission and CFTC Announce Harmonized Approach to CCPs

On January 15, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued CFTC letter 16-03 (“Letter”) providing a conditional, time-limited extension of the relief provided in CFTC Letter 13-41, issued on June 28, 2013, regarding the masking of certain identifying information required to be reported in connection with swaps required to be reported to a swaps data repository. The CFTC had previously authorized the masking of certain identifying information in response to concerns by expressed by the International Swaps and Derivatives Association, Inc., on behalf of its members, regarding potential inconsistencies between CFTC requirements and privacy and blocking laws of certain foreign jurisdictions. The Letter, permits, among other things, (1) adding jurisdictions that may be eligible for relief as foreign jurisdictions, and (2) reporting parties who previously met the conditions in CFTC Letter 13-41, or who will meet those conditions in the future, to fulfill their reporting obligations while acknowledging privacy, secrecy and blocking laws in the relevant foreign jurisdictions.
Continue Reading Extension of Time-Limited, Conditional No-Action Relief Regarding Masking Certain Reportable Identifying Information

The Commodity Futures Trading Commission has authorized the National Futures Association (NFA) to receive, review, maintain and serve as the official custodian of records for notices of swap valuation disputes in excess of US $20 million (or its equivalent in other currencies) provided by swap dealers (SDs) and major swap participants (MSPs), pursuant to its Regulation 23.502(c ), effective March 1.
Continue Reading CFTC Issues Order Delegating to the NFA Certain Functions Related to Notices of Swap Valuation Disputes

On January 21, the Commodity Futures Trading Commission launched its Whistleblower Program’s new website, www.whistleblower.gov. The new website has a user-friendly interface to help educate the public regarding the Whistleblower Program, including whistleblower rights and protections, the process for filing a tip and applying for an award. Users also can submit tips on potential

On August 28, the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange and Commodity Exchange, Inc. (Exchanges) notified the Commodity Futures Trading Commission that they have adopted a new Rule 575 to prohibit certain disruptive trading practices. Among other things, Rule 575 prohibits activity identified by the CFTC as “spoofing” (bidding or offering with intent to cancel before execution), “quote stuffing practices” (submitting or canceling bids or offers to overload the quotation system or delay another person’s trade execution) and the disorderly execution of transactions during the closing period.
Continue Reading CME Group Adopts New Disruptive Trading Practices Rule