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On April 22, the Commodity Futures Trading Commission’s Division of Data, Division of Market Oversight and Division of Clearing and Risk (collectively, the Divisions) issued CFTC Letter No. 21-11, which (1) provides no-action relief to KalshiEX LLC (Kalshi), a designated contract market, and LedgerX, LLC (LedgerX), a derivatives clearing organization, from reporting to swap data repositories data for binary option transactions executed on or subject to the rules of Kalshi and cleared by LedgerX; and (2) exempts Kalshi and LedgerX from certain related recordkeeping requirements.
Continue Reading CFTC Issues Conditional Relief From Reporting Fully Collateralized Binary Option Data to Swap Data Repositories

On March 10, the European Commission (the Commission) published a draft delegated act detailing the obligation on clearing members and clients when providing clearing services under fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms (the Delegated Act).
Continue Reading European Commission Publishes Draft Delegated Act on FRANDT

The Commodity Futures Trading Commission (CFTC) has announced that its Global Markets Advisory Committee (GMAC) will hold a meeting on March 11 at 9:00 a.m. (ET). At this meeting, the GMAC will hear presentations and provide dialogue on matters related to retail participation in the derivatives markets.
Continue Reading CFTC Announces Global Markets Advisory Committee Meeting

On January 27, Allison Herren Lee, the acting chair of the Securities and Exchange Commission, announced the European Commission’s (EC) adoption of an equivalence decision, stating that the SEC’s regulatory framework applicable to central counterparties (CCPs) that are “covered clearing agencies” under SEC rules is equivalent to relevant European legal and regulatory requirements.
Continue Reading European Commission Adopts Equivalence Decision With Respect to SEC Regulatory Framework for Central Counterparties

On November 23, the European Securities and Markets Authority (ESMA) published a final report on regulatory technical standards (RTS) on the risk mitigation techniques for OTC derivative contracts not cleared by central counterparties detailing bilateral margin requirements under the European Market Infrastructure Regulation (EMIR) (the Report).
Continue Reading ESMA Publishes Final Report on EMIR RTS Clearing Obligation Regarding Intragroup Transactions and Novations From UK to EU Counterparties

On September 21, the European Commission (Commission) adopted a time-limited decision to provide financial market participants 18 months within which they should reduce their exposure to UK central counterparties (CCPs) (the Decision).
Continue Reading EU Commission Adopts Time-Limited Decision for Continued Access to UK Central Counterparties

On July 9, the European Central Bank (ECB) published a blog by Yves Mersch, member of the Executive Board of the ECB and vice-chair of the Supervisory Board of the ECB, on the preparations of European Union (EU) banks for the end of the Brexit transition period (the Blog).
Continue Reading ECB Blog on Preparation for the End of the Brexit Transition Period

On July 9, the European Commission (the Commission) published a communication to help national authorities, businesses and citizens prepare for the changes that will arise at the end of the Brexit transition period on December 31 (the Communication).
Continue Reading European Commission Publishes Communication on the Post-Brexit Transition Period

On June 25, the five regulators responsible for Section 13 of the Bank Holding Company Act of 1956 (Volcker Rule) approved a set of amendments that modify and clarify the covered fund provisions of the regulations implementing the Volcker Rule. (The five regulators are the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, and the Securities and Exchange Commission.) The final amendments are generally the same as those proposed in January of this year.
Continue Reading Volcker Rule Regulators Make Changes to Covered Fund Rules

On June 2, the European Securities and Markets Authority (ESMA) published a final report setting out technical advice to the European Commission (EC) on the fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms for the provision of clearing services (the Report).
Continue Reading ESMA Publishes Report on FRANDT Commercial Terms for Clearing Services