On February 10, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-03 (the Notice) urging member firms to review their policies and procedures with respect to red flags of potential securities fraud involving low-priced securities.
Continue Reading FINRA Releases Regulatory Notice on Policies and Procedures Relating to Fraud Involving Low-Priced Securities

On January 4, the Commodity Futures Trading Commission’s (CFTC) Market Participants Division (MPD) issued Staff Letter 21-02 providing temporary no-action relief to permit futures commission merchants (FCM) to invest customer funds in investments that have adjustable rates of interest that correlate closely with, or are determined solely by reference to, a benchmark of the Secured Overnight Financing Rate (SOFR), recognizing the increasing use of SOFR as an alternative reference rate to LIBOR in financial markets.
Continue Reading CFTC Staff Provides Temporary Relief to Futures Commission Merchants Regarding Certain SOFR-Linked Investments

On January 7, the Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) announced the signing of an Enhanced Memorandum of Understanding (MOU) regarding cooperation and the exchange of information with respect to certain registered derivatives clearing organizations established in the United States that are central counterparties (CCPs) recognized by ESMA under the European Market Infrastructure Regulation.
Continue Reading CFTC and ESMA Sign Enhanced MOU Related to Certain Recognized Central Counterparties

On December 8, the Commodity Futures Trading Commission (CFTC) approved a final rule amending Part 37 of the CFTC Regulations addressing operational issues facing swap execution facilities (SEF) and their market participants in connection with the CFTC’s regulatory requirements for a SEF’s audit trail data, financial resources, and chief compliance officer (CCO). Specifically, the Final Rule (1) eliminates the requirement for a SEF to capture and retain post-execution allocation information in its audit trail data, (2) applies the existing Core Principle 13 financial resources requirements to SEF operations in a less burdensome manner, and (3) streamlines requirements for the CCO position and allows SEF management to exercise greater discretion in CCO oversight.
Continue Reading CFTC Unanimously Approves Final Rules Related to SEFs and Withdraws Comprehensive Proposals

On December 8, the Commodity Futures Trading Commission (CFTC) unanimously approved two final rules related to margin requirements for uncleared swaps for swap dealers (SD) and major swap participants (MSP).
Continue Reading CFTC Unanimously Approves Final Rules Related to Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants

On December 8, the Commodity Futures Trading Commission (CFTC) approved a final rule amending CFTC Regulation Part 38 to address the risk of a designated contract market’s (DCM) trading platform experiencing a market disruption due to electronic trading. The final rule sets forth three principles applicable to DCMs concerning:
Continue Reading CFTC Approves Final Rules Regarding Electronic Trading Risk Principles and Bankruptcy Regulations

On December 8, the Commodity Futures Trading Commission (CFTC) approved a final rule making technical amendments to CFTC regulations to align with recent organizational changes, remove unnecessary language, and correct inaccurate text and other typographical errors. The amendments are immediately effective upon publication in the Federal Register, unless otherwise noted. 
Continue Reading CFTC Unanimously Approves Technical Amendments to Reflect Organizational Changes

On December 8, the National Futures Association (NFA) issued Notice I-20-45 to remind member firms that the compliance date for NFA’s Swaps Proficiency Requirements (Requirements) is January 31, 2021 (Compliance Date). As more fully discussed in the July 10, 2020 edition of the Corporate & Financial Weekly Digest,
Continue Reading NFA Issues Notice to Members Regarding Compliance Date Swaps Proficiency Requirements

On November 24, the Commodity Futures Trading Commission’s (CFTC) Division of Data (DOD) granted temporary no-action relief to DTCC Data Repository LLC (DDR) from certain requirements of the swaps data repository (SDR) rules in Part 49 of the CFTC’s regulations. DDR requested relief because it planned to implement revisions to its infrastructure and applications consistent with recent amendments to the CFTC’s reporting rules prior to the effective date of such rules.
Continue Reading CFTC Staff Grants Temporary Relief to DTCC Data Repository LLC and Related Entities from Reporting Requirements