Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: CFTC

CFTC Permits DCOs to Invest Customer Funds in European Sovereign Debt

Posted in CFTC, Derivatives
The Commodity Futures Trading Commission has issued an order granting limited relief from the provisions of CFTC Rule 1.25 that will allow derivatives clearing organizations (DCOs) to invest euro-denominated futures and cleared swap customer funds in euro-denominated sovereign debt issued by France and Germany. Among other requirements, the order provides that the dollar-weighted average of… Continue Reading

Regulators Publish Changes to the Volcker Rule

Posted in Banking, CFTC, Dodd-Frank Developments
On July 17, the Federal Register published proposed changes to the Volcker Rule that were jointly approved by the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Securities and Exchange Commission. As described in greater detail in the June 1,… Continue Reading

CFTC Issues Customer Advisory on Digital Coins and Tokens

Posted in CFTC, Digital Assets and Virtual Currencies
The Commodity Futures Trading Commission has issued an advisory warning customers of the dangers of purchasing digital coins or tokens. Among other things, the advisory warns customers that buying digital coins or tokens for speculative purposes carries significant risk and identifies various factors that could affect the current or longer-term value of a digital coin… Continue Reading

SEC and CFTC Approve New MOU

Posted in Broker-Dealer
On June 28, the Securities and Exchange Commission and Commodity Futures Trading Commission announced the approval of a new Memorandum of Understanding (MOU) aimed at ensuring continued information sharing between the agencies. The MOU updates and enhances a 2008 MOU between the agencies by adding various elements that reflect current market conditions. For example, the… 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

Posted in CFTC
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… Continue Reading

CFTC Votes on a Final Rule and Two Proposed Rule Amendments

Posted in CFTC
On June 4, the Commodity Futures Trading Commission voted to approve a final rule to amend various portions of Part 49 of CFTC Regulations relating to swap data repository indemnification and related matters. The CFTC also voted to approve two rule proposals, including (1) proposed amendments relating to Volcker Rule restrictions on proprietary trading and… Continue Reading

CFTC Proposes To Maintain Swap Dealer Registration De Minimis Exception at $8 Billion

Posted in CFTC
The Commodity Futures Trading Commission is proposing various amendments to the de minimis exception from registration as a swap dealer. The de minimis exception provides that a person is not deemed to be a swap dealer unless its swap dealing activities exceed an aggregate gross notional amount of $8 billion measured over any 12-month period.… Continue Reading

CFTC Issues Proposed Rule to Amend Margin Requirements

Posted in CFTC, Derivatives
On May 17, the Commodity Futures Trading Commission released a proposed rule to amend the CFTC’s margin requirements for uncleared swaps for swap dealers and major swap participants. The proposed rule amendments are intended to make the same changes to the CFTC margin requirements that federal banking regulators recently proposed for the margin rules for… Continue Reading

CFTC Issues Virtual Currency Advisory for Exchanges and Clearinghouses

Posted in CFTC, Derivatives
On May 21, the Commodity Futures Trading Commission released a staff advisory that provides guidance to designated contract markets (DCMs) and swap execution facilities (SEFs) that plan to list virtual currency derivatives for trading and clearing organizations (DCOs) intending to clear virtual currency derivatives. The advisory notes that the CFTC’s recommendations are informed by the… Continue Reading

CFTC Grants Foreign Board of Trade Application to ASX24

Posted in CFTC
On May 15, the Commodity Futures Trading Commission issued an order granting Australian Securities Exchange Limited (ASX24) registration as a foreign board of trade (FBOT). As a registered FBOT, ASX24 is authorized to permit members and other exchange participants to trade directly on its platform without having to trade through an intermediary. With this order,… Continue Reading

CFTC and NASAA Sign Information Sharing Agreement

Posted in CFTC
On May 21, the Commodity Futures Trading Commission announced that it had signed a mutual cooperation agreement with the North American Securities Administrators Association (NASAA) to promote information sharing between the CFTC and state securities regulators. The agreement is designed to assist in the enforcement of the Commodity Exchange Act, which state securities regulators and… Continue Reading

CFTC Grants Relief to Certain Non-US Persons in Determining Swap Dealer and Major Swap Participant Status

Posted in CFTC, Derivatives
On May 16, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) provided no-action relief for certain non-US persons from counting swaps with international financial institutions, such as the International Monetary Fund, that are incorporated or based in the United States in determining swap dealer and major swap participant status as… Continue Reading

CFTC Opens Access to Indian Futures Market for US Customers

Posted in CFTC
On May 17, the Commodity Futures Trading Commission issued an order to the National Stock Exchange of India (NSE) through its Part 30 exemptive program, which affords regulatory deference to foreign regulatory frameworks and provides US customers greater access to certain foreign futures markets. The order allows NSE’s members to directly accept US customer funds… Continue Reading

CFTC Staff Issues Interpretive Guidance Regarding Aggregation by Passive Pool Investors

Posted in CFTC
On May 2, the Commodity Futures Trading Commission’s Division of Market Oversight responded to a request for an interpretation regarding CFTC Rule 150.4(b)(1), which provides an exception from the CFTC’s speculative position limit aggregation rules for certain “passive” investors in commodity pools. Generally, for purposes of calculating compliance with speculative position limits, the CFTC’s rules… Continue Reading

SEC Proposes Best Interest Standard for Broker-Dealers

Posted in Broker-Dealer
On April 18, the Securities and Exchange Commission proposed a new rule under the Securities Exchange Act of 1934, creating a standard of conduct for registered broker-dealers who make recommendations of securities transactions or investment strategies involving securities to a retail customer. The best interest standard requires broker-dealers to act in the best interest of… 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

Posted in CFTC, Derivatives
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… Continue Reading

NFA Issues Notice Regarding Reporting Requirements for CPOs, CTAs and IBs That Deal in Virtual Currencies

Posted in CFTC
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,… Continue Reading

CFTC Seeks Market Risk Advisory Committee Membership Nominations and Public Comment on Committee Priorities

Posted in CFTC, Derivatives
On March 15, the Commodity Futures Trading Commission published in the Federal Register a request for nominees for the membership positions on the Market Risk Advisory Committee (MRAC). MRAC is a discretionary advisory committee that conducts public meetings and submits reports and recommendations to the CFTC on matters including systemic risk and changes in the… Continue Reading

CFTC Extends No Action Relief for Shanghai Clearing House

Posted in CFTC
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… Continue Reading

CFTC Extends Exemptive Relief From Quarterly Account Statements

Posted in CFTC
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… Continue Reading

CFTC and UK Financial Conduct Authority Sign Cooperation Arrangement on Financial Technology Innovation

Posted in CFTC, Digital Assets and Virtual Currencies, UK Developments
On February 19, the Commodity Futures Trading Commission and the UK Financial Conduct Authority (FCA) signed the “Cooperation Arrangement on Financial Technology Innovation,” which memorializes the intention of the CFTC and FCA to collaborate and support their respective financial technology (FinTech) initiatives—LabCFTC and FCA Innovate. The arrangement intends to support these FinTech initiatives through an… Continue Reading

CFTC Extends Time-Limited No-Action Relief for Entities Submitting Swaps for Clearing With Certain DCOs

Posted in CFTC, Derivatives
On February 20, the Commodity Futures Trading Commission’s Division of Market Oversight (DMO) published Staff Letter 18-03, which extends the time-limited no-action relief provided in Staff Letter 16-85 for entities submitting swaps for clearing by derivatives clearing organizations (DCOs) operating under (1) exemptive orders issued by the CFTC; or (2) no-action relief granted by the… Continue Reading