On June 25, the Commodity Futures Trading Commission held an open meeting where it approved two final rules, advanced two proposed rules and withdrew a previously proposed rule and supplemental proposal.
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Commodity Exchange Act
NFA Proposes Amendments to Part 3 of NFA’s Compliance Rules Regarding Disciplinary Process
By Kevin M. Foley & Jack A. West on
Posted in CFTC
On May 19, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission proposed amendments to Part 3 of NFA’s Compliance Rules regarding the compliance procedures that control NFA’s disciplinary process. Specifically, the proposed amendments (1) revise NFA Compliance Rule 3-14 to increase the maximum penalty fine amount from $250,000 to $500,000 per violation; (2) modify the rules related to certain Business Conduct Committee’s practices; and (3) make minor technical amendments.…
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CFTC and NFA Issue Temporary No-Action Relief for Principal or Associated Person Listings/Registrations
By Kevin M. Foley & Elizabeth Organ on
Posted in CFTC
On April 24, at the request of the National Futures Association (NFA), the staff of the Commodity Futures Trading Commission (CFTC) issued a no-action letter providing regulatory relief to principals of registrants and applicants for associated person (AP) registration with respect to submission of fingerprint cards. …
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CFTC Grants Bitnomial Exchange, LLC Status as a Designated Contract Market
Posted in CFTC
The Commodity Futures Trading Commission (CFTC) announced that it has issued an Order of Designation to Bitnomial Exchange, LLC (Bitnomial Exchange), granting it status as a designated contract market (DCM), effective April 20, 2020. Located in Chicago, Bitnomial Exchange is a limited liability company formed under Delaware state law. Bitnomial Exchange must comply with all…
CFTC Approves Proposed Rules on Filing Requirements for CPOs and Clearing Requirements for Certain Institutions
By Jack A. West & Kevin M. Foley on
Posted in CFTC, Derivatives
On April 14, the Commodity Futures Trading Commission (CFTC) at its open meeting unanimously approved two proposed rules regarding (1) amendments to Form CPO-PQR and related filing requirements for commodity pool oOperators (CPOs); and (2) amendments to the rules governing the treatment of swaps entered into by certain financial institutions.…
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CFTC Provides Relief to Certain Foreign Affiliates of FCMs in Response to COVID-19
By Kevin M. Foley & Stanley V. Polit on
Posted in CFTC
On March 31, the Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission (CFTC) issued Staff Letter No. 20-12 (Letter), announcing temporary no-action relief (Relief) that allows certain non-US entities, that are exempt from registration with the CFTC as introducing brokers pursuant to CFTC Regulation 30.5 (Foreign Brokers), and which are affiliates of futures commission merchants (FCMs) registered with the CFTC, to handle US order flow under certain conditions. …
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CFTC Issues Final Interpretive Guidance on Actual Delivery for Digital Assets
By Kevin M. Foley & Laura N. Krcmaric on
Posted in CFTC, Digital Assets and Virtual Currencies
On March 24, the Commodity Futures Trading Commission (CFTC) issued final interpretive guidance regarding retail commodity transactions that involve digital assets. The interpretive guidance is designed to clarify the CFTC’s views on the “actual delivery” exception to Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) for digital assets that serve as a medium of exchange (otherwise known as “virtual currencies”).…
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CFTC Grants Market Participants LIBOR-Transition Relief
By Kevin M. Foley & Laura N. Krcmaric on
Posted in CFTC, Derivatives
On December 18, the Division of Swap Dealer and Intermediary Oversight (DSIO), the Division of Market Oversight (DMO) and the Division of Clearing and Risk (DCR) each issued a no-action letter providing relief to market participants in preparation for the transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates (collectively with LIBOR, IBORs). The letters identify the terms and conditions pursuant to which counterparties may be eligible for relief in connection with amending swaps to replace provisions referencing discontinued IBORs with alternative benchmarks.…
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CFTC to Hold Open Commission Meeting on November 25
By Kevin M. Foley & Adam P. Haft on
Posted in CFTC
The Commodity Futures Trading Commission (CFTC) will hold an open meeting on Monday, November 25 at 10:00 a.m. EST to discuss (1) Final Rules amending CFTC Rules 4.5, 4.7, 4.13, 4.14 and 4.27; and (2) a Proposed Rule amending swap clearing requirement exemptions under Part 50 of the Commodity Exchange Act.
The meeting is open…
CFTC, FinCEN, and SEC Issue Joint Statement on Activities Involving Digital Assets
On October 11, the leaders of the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (collectively, the Agencies) issued a joint statement reminding persons engaged in activities involving digital assets of their anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations under the Bank Secrecy Act of 1970 (BSA).…
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