Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: CFTC

NFA Reminds Members of Effective Date for Amendments to Information Systems Security Program Requirements

Posted in CFTC
On March 1, the National Futures Association (NFA) published Notice I-19-07 (Notice), alerting Members that April 1 will be the effective date for amendments to NFA’s Interpretive Notice entitled NFA Compliance Rules 2-9, 2-36 and 2-49: Information Systems Security Programs (Interpretive Notice). (For a discussion of such amendments, please refer to the January 11, 2019… Continue Reading

NFA Issues Notice Regarding Updated FinCEN AML/CFT Guidance

Posted in CFTC
On March 12, the National Futures Association (NFA) published Notice I-19-08, notifying Member futures commission merchants (FCMs) and introducing brokers (IBs) of a March 8 advisory published by the Financial Crimes Enforcement Network (FinCEN) regarding updates to the Financial Action Task Force’s list of jurisdictions with deficiencies regarding anti-money laundering and combating the financing of… 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

CFTC Issues Advisory on Violations of the CEA Involving Foreign Corrupt Practices

Posted in CFTC
On March 6, the Commodity Futures Trading Commission’s Division of Enforcement issued an Enforcement Advisory regarding self-reporting and cooperation for violations of the Commodity Exchange Act (CEA) involving foreign corrupt practices. Providing further guidance regarding the Enforcement Division’s cooperation and self-reporting program, the Advisory notes that the Enforcement Division will apply a presumption that it… Continue Reading

NFA Proposes Amendments to Bylaw 301, Compliance Rule 2-24 and Related Interpretive Notice

Posted in CFTC
On March 5, the National Futures Association (NFA) submitted with the Commodity Futures Trading Commission proposed amendments to NFA Bylaw 301 and Compliance Rule 2-24. The proposed changes to NFA Bylaw 301(l) are intended to specify that any individual applying for approval as a futures commission merchant (FCM), introducing broker (IB), commodity pool operator (CPO)… Continue Reading

CFTC To Hold an Open Commission Meeting on March 7

Posted in CFTC
The Commodity Futures Trading Commission will hold a meeting on March 7 at 10:00 a.m. ET, which will be open to the public. The meeting will cover the following topics: Amendment to the Comparability Determination for Japan: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants; Comparability Determination for Australia: Margin Requirements… Continue Reading

CFTC Announces Technology Advisory Committee Meeting

Posted in CFTC
The Commodity Futures Trading Commission has announced that its Technology Advisory Committee (TAC) will hold a meeting on Wednesday, March 27. The meeting will be held in the Conference Center at the CFTC headquarters from 10:00 a.m.–3:30 p.m. ET. Representatives of several TAC subcommittees, including Automated and Modern Trading Markets, Distributed Ledger Technology and Market… Continue Reading

Statement Published on Post-Brexit Continuity of Derivatives Trading and Clearing Measures

Posted in CFTC, Financial Markets, UK Developments
On February 25, the Bank of England (BoE), the UK Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission published a joint statement on measures intended to ensure the continuity of UK-US derivatives trading and clearing activities following the United Kingdom’s withdrawal from the European Union (Brexit).… Continue Reading

CFTC Commissioners File Comment Letter Regarding Proposed Standardized Approach for Measuring Counterparty Credit Risk

Posted in CFTC, Derivatives
On February 15, four members of the Commodity Futures Trading Commission (Commissioner Stump recused herself) filed a comment letter regarding the standardized approach for calculating the exposure amount of derivative contracts proposed by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the… Continue Reading

CFTC Divisions Announce 2019 Examination Policies

Posted in CFTC, Derivatives
On February 12, the Commodity Futures Trading Commission announced 2019 Examination Priorities (the “Examination Priorities”) for registrants of the Division of Market Oversight (DMO), Division of Swap Dealer and Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). This marks the first time that the agency has published Examination Priorities for its divisions.… Continue Reading

CFTC Requests Public Comment on a Rule Amendment Certification Filing by ICE Futures U.S.

Posted in CFTC
The Commodity Futures Trading Commission is requesting public comment on a rule amendment certification filing by ICE Futures U.S., Inc. (IFUS). As described in the certification, the proposed amendment to IFUS Rule 4.26 would allow for the implementation of Passive Order Protection (POP) Functionality, which is intended to reduce latency advantages between traders engaged in… Continue Reading

CFTC Issues No-Action Relief From Certain Position Aggregation Requirements

Posted in CFTC
On December 21, 2018, the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission issued Letter 18-33 responding to a request for relief from compliance with certain position aggregation requirements under CFTC Regulation 150.4(b)(2)(i)(D). CFTC Regulation 150.4(b)(2) provides an owned-entity exemption from aggregation. Any person with an ownership or equity interest in an… Continue Reading

NFA Adopts Interpretive Notice Regarding CPO Internal Controls Systems

Posted in CFTC
On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators with guidance on designing and implementing an adequate system of internal controls. On January 31, the NFA issued Notice I-19-03 announcing the recent adoption of… Continue Reading

CFTC Issues Request for Input on Crypto-Assets

Posted in CFTC, Digital Assets and Virtual Currencies
As part of its LabCFTC initiative, the Commodity Futures Trading Commission issued a Request for Input (RFI) to deepen the CFTC’s understanding of the technology, mechanics, and markets for Ether and its use on the Ethereum Network. In particular, the RFI seeks to understand similarities and distinctions between Ether and Bitcoin (as well as other… Continue Reading

NFA Proposes Interpretive Notice Regarding CPO Internal Controls Systems

Posted in CFTC
On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission a proposed Interpretive Notice to NFA Compliance Rule 2-9, which would provide commodity pool operators (CPOs) with guidance on designing and implementing an adequate system of internal controls. Specifically, the Interpretive Notice requires CPOs to implement an internal controls system… Continue Reading

NFA Proposes Amendments Incorporating Swaps into Compliance Rules and Interpretive Notices

Posted in CFTC, Derivatives
On December 10, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for review and approval proposed amendments to various NFA Compliance Rules and four NFA Interpretive Notices to incorporate swaps into these rules and notices. Specifically, the NFA proposal would amend the following Compliance Rules:… Continue Reading

CFTC Proposes To Amend Annual Privacy Notice Requirement

Posted in CFTC
The Commodity Futures Trading Commission has proposed to amend its regulations to eliminate the requirement for registered firms to provide annual privacy notices to their customers, under certain conditions, consistent with amendments made to the Gramm-Leach-Bliley Act in late 2015. If adopted, the proposed amendments would provide an exemption to registered futures commission merchants, retail… Continue Reading

CFTC Grants Exemption From SEF Registration to Four Additional MTFs

Posted in CFTC
The Commodity Futures Trading Commission has amended its order granting an exemption from swap execution facility (SEF) registration to include four additional multilateral trading facilities: Creditex Brokerage LLP; Currenex; FX Connect; and Thomson Reuters. The order, which was originally issued by the CFTC in December 2017 and discussed in the December 15, 2017 edition of… Continue Reading

NFA Proposes To Amend Interpretive Notice on Information Systems Security Programs

Posted in CFTC
National Futures Association (NFA) has proposed to amend its interpretive notice on information systems security programs (ISSPs) to further clarify each member’s obligations relating to its ISSP, including training, approval and incident reporting. With respect to ISSP training, the amended interpretive notice will require members to train their employees upon hiring and on at least… Continue Reading

CFTC’s LabCFTC Releases Primer on Smart Contracts

Posted in CFTC
On November 27, the Commodity Futures Trading Commission’s LabCFTC released “A CFTC Primer on Smart Contracts” to provide information on a variety of financial technology (FinTech) topics. LabCFTC is a hub designed for the CFTC to engage with the FinTech community. The primer defines a “smart contract” as “a set of coded computer functions” that… Continue Reading

CFTC Announces Agenda for Market Risk Advisory Committee Public Meeting

Posted in CFTC
The Commodity Futures Trading Commission has announced that its Market Risk Advisory Committee will hold a meeting on December 4. The meeting will be held at CFTC’s headquarters in Washington, DC beginning at 9:30 a.m. and is open to the public. The Committee will receive a report from the Interest Rate Benchmark Reform Subcommittee, followed… Continue Reading

CFTC Approves a Final Rule to Amend Uncleared Swap Margin Requirements

Posted in CFTC, Derivatives
On November 19, the Commodity Futures Trading Commission approved a final rule to amend its margin requirements for uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator (CFTC Margin Rule). As a part of the Project KISS initiative, the amendments were designed to harmonize the CFTC Margin Rule… Continue Reading