On September 13, the Commodity Futures Trading Commission issued Release 7784-18, announcing that the CFTC and the Monetary Authority of Singapore signed the Cooperation Arrangement on Financial Technology Innovation (FinTech Arrangement) on September 13. The FinTech Arrangement supports both authorities’ efforts to facilitate FinTech development and innovation in their respective markets by focusing on information
Timothy D. Nolan
SEC Adopts New Form ATS-N and Amendments to Regulation ATS and Exchange Act Rule 3a1-1 to Enhance Transparency and Oversight of Alternative Trading Systems
On July 18, the Securities and Exchange Commission adopted new Form ATS-N and amendments to Regulation ATS and Exchange Act Rule 3a1-1. The new requirements are designed to enhance transparency of alternative trading systems (ATSs) that trade stocks listed on a national securities exchange (NMS Stock ATSs) by requiring them to publicly disclose detailed information about their operations, including order types and market data used on the ATS, fees, the ATS’s execution and priority procedures, and any procedures to segment orders on the ATS.
Continue Reading SEC Adopts New Form ATS-N and Amendments to Regulation ATS and Exchange Act Rule 3a1-1 to Enhance Transparency and Oversight of Alternative Trading Systems
NFA Proposes Amendments to Compliance Rule 2-9(c) and Interpretive Notice: Compliance Rule 2-9: FCM and IB Anti-Money Laundering Program
On June 15, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to NFA Compliance Rule 2-9(c) and the NFA Interpretive Notice entitled Compliance Rule 2-9: FCM and IB Anti-Money Laundering (AML) Program (collectively, the Amendments). Rule 2-9(c) requires futures commission merchants (FCMs) and introducing brokers (IBs) to develop and implement anti-money laundering programs designed to achieve compliance with the requirements of the Bank Secrecy Act.
Continue Reading NFA Proposes Amendments to Compliance Rule 2-9(c) and Interpretive Notice: Compliance Rule 2-9: FCM and IB Anti-Money Laundering Program
CFTC’s Division of Swap Dealer and Intermediary Oversight Extends Exemptive Relief From CFTC Regulations 4.7 and 4.2 Requirement to Prepare Financial Statements in Accordance With US GAAP
On March 30, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued Letter 18-09, which granted exemptive relief to a commodity pool operator (CPO) of a foreign “Master Fund” and a US “Feeder Fund.” CFTC rules generally require that the financial statements a CPO is required to provide US pool participants, both in periodic reports and the annual report, must be prepared in accordance with US generally accepted accounting principles (US GAAP). However, where the pool is organized under the laws of a foreign jurisdiction, CFTC Rule 4.22(d)(2)(i) authorizes a CPO to compute and present financial statements in accordance with applicable accounting standards in that jurisdiction, including International Financial Reporting Standards (IFRS), subject to the conditions set out in the Rule.
Continue Reading CFTC’s Division of Swap Dealer and Intermediary Oversight Extends Exemptive Relief From CFTC Regulations 4.7 and 4.2 Requirement to Prepare Financial Statements in Accordance With US GAAP
FINRA Requests Comment on the Effectiveness and Efficiency of Its Carrying Agreements Rule
On March 23, the Financial Industry Regulatory Authority (FINRA) announced it is conducting a retrospective review of FINRA Rule 4311, governing carrying agreements. As part of its review, FINRA has requested comment to determine the Rule’s effectiveness and efficiency.
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NFA Issues Notice Regarding Reporting Requirements for CPOs, CTAs and IBs That Deal in Virtual Currencies
On March 27, the National Futures Association (NFA) issued Notice I-18-07, reminding commodity pool operators (CPOs), commodity trading advisors (CTAs) and introducing brokers (IBs) to immediately notify NFA by amending the firm-level section of their respective annual questionnaires if they trade any virtual currency products or solicit or accept any order in virtual currency products, as applicable. (See notice I-17-28 and I-17-29, as reported in the Corporate & Financial Weekly Digest edition of January 12, 2018.)
Continue Reading NFA Issues Notice Regarding Reporting Requirements for CPOs, CTAs and IBs That Deal in Virtual Currencies
CFTC Extends No Action Relief for Shanghai Clearing House
On February 23, the Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) issued No-Action Letter 18-04, which extends relief previously granted to the Shanghai Clearing House (SHCH) under CFTC No-Action Letter 16-56 (as reported in the June 3, 2016, edition of Corporate and Financial Weekly Digest), and renewed in CFTC No-Action Letters 17-26 and 17-62. CFTC No Action Letter 17-62 expired on February 28.
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CFTC Extends Exemptive Relief From Quarterly Account Statements
On February 20, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight issued Exemptive Relief Letter 18-05, which granted relief to a commodity pool operator (CPO) of a commodity pool operated as a “fund of funds.” The Letter provided the CPO with additional time after the end of each calendar quarter to …
FINRA Proposes Rule Change To Provide Additional Hearing Options for Parties in Certain Arbitrations
On January 30, the Financial Industry Regulatory Authority filed a proposed rule change with the Securities and Exchange Commission to adopt amendments to FINRA Rules 12600 and 12800 of the Code of Arbitration Procedures for Customer Disputes (Customer Code) and FINRA Rules 13600 and 13800 of the Code of Arbitration Procedure for Industry Disputes (Industry Code).
Continue Reading FINRA Proposes Rule Change To Provide Additional Hearing Options for Parties in Certain Arbitrations
CFTC Approves Amendments to Commission Regulations Under Parts 3 and 9
On January 9, the Commodity Futures Trading Commission announced it had unanimously approved final rules that update Parts 3 (Registration) and 9 (Review of Exchange Disciplinary, Access Denial or Other Adverse Actions). These updates integrate existing advisory guidance, incorporate swap execution facilities, and update provisions currently applicable to designated contract markets. The CFTC also approved…