Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: CFTC

CFTC and Monetary Authority of Singapore Sign Arrangement To Cooperate on FinTech Innovations

Posted in CFTC
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… Continue Reading

CFTC Extends Comment Period on Proposed Amendments to the Volcker Rule

Posted in CFTC
On September 4, the Commodity Futures Trading Commission, in conjunction with the Office of the Comptroller of the Currency, Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and Securities and Exchange Commission, extended the comment period on the proposed amendments to the regulations implementing Section 13 of the… Continue Reading

NFA Releases Notice Regarding Swap Valuation Dispute Filing Process

Posted in CFTC
On September 6, the National Futures Association (NFA) sent a notice to its members with information regarding the Interpretive Notice to NFA Compliance Rule 2-49. NFA Compliance Rule 2-49 requires swap dealers and major swap participants (collectively, SDs) to promptly submit relevant information to the NFA in the form and manner prescribed by NFA. The… Continue Reading

CFTC Releases No-Action Position on PCAOB Requirement to Communicate Critical Audit Matters

Posted in CFTC
On August 29, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued a no-action letter confirming that it will not recommend enforcement action against a futures commission merchant (FCM) if the accountant’s audit opinion included in the FCM’s annual financial report does not include “critical audit matters” (or the absence… Continue Reading

CFTC Grants No-Action Relief Relating to Counting Toward the Swap Dealer Registration De Minimis Threshold

Posted in CFTC
On August 28, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued time-limited, no-action relief, permitting certain insured depository institutions (IDIs) from counting certain swaps toward the swap dealer de minimis threshold. Relief was requested after certain IDIs experienced a spike in the demand for interest rate swaps from existing… Continue Reading

Senate Confirms Two CFTC Nominations

Posted in CFTC
On August 28, the US Senate confirmed the nominations of Dawn Stump and Dan Berkovitz as commissioners of the Commodity Futures Trading Commission. With the addition of two new commissioners, all five commissioner positions have now been filled. Commissioners Brian D. Quintenz and Rostin Behnam and Chairman J. Christopher Giancarlo released statements following the Senate… Continue Reading

CFTC Adopts Amendments To Simplify Chief Compliance Officer Duties and Annual Report Rules

Posted in CFTC
On August 21, the Commodity Futures Trading Commission adopted amendments to Rule 3.3, which sets out the duties of a chief compliance officer (CCO) of a futures commission merchant, swap dealer and major swap participant (each, a registrant). The amended rules are designed to simplify a CCO’s duties under the rule and to harmonize further… Continue Reading

CFTC Proposes To Exempt Some Companies and Institutions From the Clearing Requirement for Certain Swaps

Posted in CFTC
On August 23, the Commodity Futures Trading Commission proposed amendments to Rule 50.5 in order to exempt certain bank holding companies, savings and loan holding companies, and community development financial institutions from the clearing requirement for certain swaps. The proposed amendments would codify no-action relief that the Division of Clearing and Risk (DCR) had granted… Continue Reading

CFTC Issues Orders of Registration to Two Foreign Boards of Trade

Posted in CFTC
On August 22, the Commodity Futures Trading Commission announced it had issued Orders of Registration to Osaka Exchange, Inc. (OSE), a Foreign Board of Trade (FBOT) located in Japan, and Nasdaq Oslo ASA (Nasdaq Oslo), an FBOT located in Norway. The Orders authorize OSE and Nasdaq Oslo to provide their identified members or other participants… Continue Reading

Joint Audit Committee Publishes Regulatory Alert Regarding Residual Interest Withdrawals

Posted in CFTC, Derivatives
On August 14, the Joint Audit Committee (JAC) released Regulatory Alert #18-04. The Alert, which responds to industry requests, clarifies the procedures that a futures commission merchant (FCM) should follow prior to making an intra-day withdrawal from the residual interest amount that the FCM maintains in its segregated, secured 30.7 and cleared swap customer accounts… Continue Reading

CFTC Proposes Rules to Simplify Process for Foreign Clearing Organizations to Obtain DCO Registration Exemptions

Posted in CFTC, Derivatives
On August 8, the Commodity Futures Trading Commission announced that it has proposed rules pursuant to which a clearing organization located outside of the United States may obtain an exemption from registration as a derivatives clearing organization (DCO) in order to provide swaps clearing services to certain US persons. The proposed rules codify the CFTC’s… Continue Reading

NFA Announces the Effective Date of Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities

Posted in CFTC, Derivatives, Digital Assets and Virtual Currencies
On August 9, the National Futures Association (NFA) announced the effective date of its recently adopted Interpretive Notice, Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities. The Interpretative Notice will go into effect on October 31 (“Effective Date”).… Continue Reading

CFTC Extends No-Action Relief to Shanghai Clearing Firm

Posted in CFTC, Derivatives
On July 31, the Commodity Futures Trading Commission’s Division of Clearing and Risk extended no-action relief to the Shanghai Clearing House (SHCH). Originally set to expire on February 28, 2019, the relief is extended until July 31, 2021. The no-action relief, originally granted in May 2016 and renewed several times, permits SHCH to continue to… Continue Reading

CFTC Proposes Improvements to Initial Margin Segregation Rule

Posted in CFTC, Derivatives, Dodd-Frank Developments
The Commodity Futures Trading Commission KISS initiative has finally produced some substantive results for swap dealers in the form of proposed amendments to Subpart L of the CFTC’s regulations (“Segregation of Assets in Uncleared Swap Transactions”) that were issued for comment on July 24. Subpart L (which encompasses CFTC Regulations 23.700-704) has been problematic for… Continue Reading

CFTC Proposes Amendments to Its Position Limit Rules

Posted in CFTC
The Commodity Futures Trading Commission is proposing to amend its position limits rules for security futures products (SFPs) to provide exchanges that list SFPs with greater discretion in setting limit levels, allowing the exchanges to provide a more effective risk management tool. Specifically, the proposed CFTC amendment would: (1) increase the default level of equity… Continue Reading

NFA Interpretive Notice Regarding Engaging in Virtual Currency

Posted in CFTC, Derivatives, Digital Assets and Virtual Currencies
On July 20, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission for approval a proposed interpretive notice regarding Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities. The new disclosure obligations will apply to all NFA members engaging in transactions in virtual currency derivatives and virtual currency, as well as other… Continue Reading

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