The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission (CFTC) has issued no-action relief to derivatives clearing organizations (DCOs) from the CFTC’s recently adopted daily reporting requirements.
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CFTC Adopts New Position Limits Requirements
By Kevin M. Foley & James M. Brady on
On October 15, the Commodity Futures Trading Commission adopted new rules on position limits. As described in greater detail in Katten’s advisory, CFTC Adopts New Position Limit Requirements, the new rules (1) set forth federal position limits for 25 different futures contracts; (2) enhance the roles played by exchanges in setting limits and granting…
CFTC Issues Guidance on Compliance Program Evaluations in Connection With Enforcement Matters
By Kevin M. Foley & James M. Brady on
Posted in CFTC
On September 10, the Commodity Futures Trading Commission’s Division of Enforcement (Division) issued guidance outlining factors to consider when evaluating compliance programs as part of enforcement matters.
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CFTC Welcomes Standardized Approaches to Assessing Cybersecurity Preparedness
Posted in CFTC
In a release on July 16, the Commodity Futures Trading Commission (CFTC) encourages financial institutions to use a standardized approach to assess and improve their cybersecurity preparedness.
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NFA Published Amendments to Its Advertising Rules
Posted in CFTC
National Futures Association (NFA) has provided limited relief to commodity trading advisors (CTAs) who are also registered investment advisers from compliance with certain portions of NFA Rule 2-29 “Communications with the Public and Promotional Material” and a related Interpretive Notice. Generally, CTAs presenting past performance in promotional materials are required to include performance net of all commissions, fees and expenses. With this relief, CTAs who are also registered as investment advisers with the Securities and Exchange Commission may present past performance to eligible contract participants (ECPs) on a gross basis in non-public one-on-one presentations, if the CTA:
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CFTC Grants Relief to Address Net Capital Treatment of PPP Monies and FINRA Annual Assessments
Posted in CFTC
On April 22, the Commodity Futures Trading Commission (CFTC) published a no-action letter providing guidance for futures commission merchants (FCMs) and introducing brokers (IBs) in connection with calculating the FCM’s or IB’s net capital under CFTC Regulation 1.17. Pursuant to the no-action letter, the CFTC will not bring an enforcement action against an FCM or…
CFTC Announces “Project Streetlamp” Competition
Posted in CFTC
The Commodity Futures Trading Commission (CFTC) announced a competition, called “Project Streetlamp,” which challenges participants to use artificial intelligence or other tools to identify unregistered foreign entities potentially engaging in illegal activity subject to the CFTC’s jurisdiction and automatically add such entities to the CFTC’s Registration Deficient (RED) List. The competition is ongoing and is…
CFTC Grants Bitnomial Exchange, LLC Status as a Designated Contract Market
Posted in CFTC
The Commodity Futures Trading Commission (CFTC) announced that it has issued an Order of Designation to Bitnomial Exchange, LLC (Bitnomial Exchange), granting it status as a designated contract market (DCM), effective April 20, 2020. Located in Chicago, Bitnomial Exchange is a limited liability company formed under Delaware state law. Bitnomial Exchange must comply with all…
SEC Approved Amendments to FINRA’s New Issue Rules
By Michael T. Foley, Susan Light & James M. Brady on
Posted in Broker-Dealer
The Securities and Exchange Commission (SEC) has approved amendments to Financial Industry Regulatory Authority (FINRA) Rules 5130 and 5131, which govern the offer and sale of “new issue” securities. The amendments went into effect on January 1. Please refer to Katten’s Financial Markets and Funds Advisory for more information.
FINRA Requests Comments on Rule 4530 Reporting Requirements
By Michael T. Foley, Susan Light & James M. Brady on
Posted in Broker-Dealer
The Financial Industry Regulatory Authority (FINRA) is requesting comment on whether to make changes to FINRA Rule 4530, which requires member firms to report specified events, internal conclusions of violations and customer complaint information to FINRA.
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