Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Commodity Exchange Act

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

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

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 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 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 Approves Exemption From SEF Registration Requirements for Multilateral Trading Facilities and Organized Trading Facilities Authorized Within the EU

Posted in CFTC, Derivatives
On December 8, in response to a request by the European Commission (EC), the Commodity Futures Trading Commission issued an order exempting certain multilateral trading facilities (MTFs) and organized trading facilities (OTFs) authorized within the European Union (EU) from the requirement to register with the CFTC as swap execution facilities (SEFs).… Continue Reading

CFTC Requests Comment on Proposed Exemptive Order to Permit ICE Clear Credit, ICE Clear US and ICE Clear Europe to Invest Customer Funds in French and German Sovereign Debt

Posted in CFTC
On December 12, the Commodity Futures Trading Commission requested comment on a proposed exemptive order, pursuant to Section 4(c) of the Commodity Exchange Act (CEA), which would grant ICE Clear Credit, ICE Clear US and ICE Clear Europe (ICE DCOs) limited exemptions from Section 4d of the CEA and CFTC Rule 1.25. Subject to the… Continue Reading

NFA Proposes to Amend NFA Registration Rule 802

Posted in CFTC
On November 30, the National Futures Association (NFA) submitted proposed amendments to NFA Registration Rule 802 to the Commodity Futures Trading Commission. The amendment is intended to ensure the language of Rule 802 is consistent with that in recently amended registration forms. Specifically, the amendments reflect changes in the language of Forms 7-R; 8-R; and… Continue Reading

CFTC’s Division of Clearing and Risk Provides No-Action Relief to Certain Foreign Financial Institutions From Swap Clearing Requirements

Posted in CFTC, Derivatives
On November 7, the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) published Staff Letters 17-57, 17-58 and 17-59 (Staff Letters), which provided Banco Centroamericano de Integración Económica, the European Stability Mechanism, and the North American Development Bank, respectively, with no-action relief from the swap clearing requirements set forth in Section 2(h)(1)… Continue Reading

Three Developments Concerning EU-US Cross-Border Swaps

Posted in CFTC, Derivatives, Dodd-Frank Developments, EU Developments
On October 13, the Commodity Futures Trading Commission and the European Commission (EC) made three announcements that are significant for cross-border swap activity between the United States and Europe. CFTC Margin Rule Comparability Determination. The CFTC has made a determination that the margin rules for uncleared swaps that apply in the European Union are comparable to… Continue Reading

CFTC Clarifies That Variation Margin Constitutes Settlement

Posted in CFTC, Derivatives
The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission has issued an interpretive letter clarifying that payments of variation margin, price alignment amounts and other payments in satisfaction of outstanding exposures on a counterparty’s cleared swap positions constitute “settlement” under the Commodity Exchange Act (CEA) and CFTC Regulation 39.14. The CEA… Continue Reading

NFA Adopts 4s Attestation Process for Swap Dealers and Major Swap Participants

Posted in CFTC, Derivatives
National Futures Association (NFA) has revised the process by which each swap dealer (SD) and major swap participant (MSP) applicant demonstrates its ability to comply with Commodity Futures Trading Commission regulations implementing Section 4s of the Commodity Exchange Act (4s Regulations), including but not limited to regulations relating to capital and margin requirements, reporting and… Continue Reading

CFTC Approves Amendments to Recordkeeping Requirements

Posted in CFTC
On May 23, the Commodity Futures Trading Commission approved amendments to Regulation 1.31, which contains the recordkeeping requirements under the Commodity Exchange Act and CFTC regulations. The final rule adopts the amendments as proposed with a few exceptions. The proposed amendments are discussed in the January 13 edition of the Corporate & Financial Weekly Digest.… Continue Reading

CFTC Seeks Comment on CME Petition for Order Permitting Commingling of Funds

Posted in CFTC
The Chicago Mercantile Exchange, Inc. (CME) has submitted to the Commodity Futures Trading Commission a petition for an order pursuant to Section 4d of the Commodity Exchange Act (CEA) whereby CME and its clearing members that are registered futures commission merchants would be permitted to hold, in accounts segregated in accordance with Section 4d of… Continue Reading

CFTC Proposes To Amend Recordkeeping Requirements

Posted in CFTC
On January 12, the Commodity Futures Trading Commission approved for publication in the Federal Register proposed amendments to Regulation 1.31, which contains the recordkeeping requirements under the Commodity Exchange Act and CFTC regulations. The CFTC proposes to eliminate certain outdated terms and provisions, add new definitions, and update language to reflect advances in information technology.… Continue Reading

CFTC Grants CME Clearing Europe Registration as a Derivatives Clearing Organization

Posted in CFTC, Derivatives
On November 29, the Commodity Futures Trading Commission approved the CME Clearing Europe (CMECE) registration as a derivatives clearing organization (DCO) under the Commodity Exchange Act. As a registered DCO, CMECE may provide clearing services with respect to 1) swaps, subject to certain requirements; and 2) futures and options on futures contracts traded on or… Continue Reading

CFTC Exempts Certain Southwest Power Pool Transactions

Posted in CFTC
On October 18, the Commodity Futures Trading Commission approved a final order exempting certain transactions of Southwest Power Pool, Inc. (SPP) from the Commodity Exchange Act (CEA) and CFTC regulations. SPP is a Regional Transmission Organization (RTO) regulated by the Federal Energy Regulatory Commission.… Continue Reading

CFTC Proposes Amendments to Whistleblower Awards Process

Posted in CFTC
On August 30, the Commodity Futures Trading Commission published in the Federal Register proposed amendments to its whistleblower awards process (17 CFR Part 165). The proposed amendments are designed to clarify the process for reviewing whistleblower claims and to reinterpret the CFTC’s authority as it relates to retaliation against whistleblowers.… Continue Reading

CFTC Grants SEF Registration Status to Seed SEF LLC

Posted in CFTC, Derivatives
On August 23, the Commodity Futures Trading Commission issued an Order of Registration granting Seed SEF LLC (Seed) full registration status as a Swap Execution Facility (SEF). Upon reviewing Seed’s application, the CFTC determined that Seed is in compliance with the Commodity Exchange Act (CEA) and CFTC regulations applicable to SEFs. As a registered SEF,… Continue Reading

CFTC Seeks Comment With Respect to ICE Futures US Rule Amendment Certification

Posted in CFTC
On June 14, the Commodity Futures Trading Commission (CFTC) announced that it had advised ICE Futures US (IFUS) that IFUS’s amendment to its Block Trade FAQ, which IFUS had previously self-certified to the CFTC pursuant to CFTC Regulation 40.6, would be stayed for a period of 90 days pending further review. The CFTC had determined… Continue Reading

CFTC Requests Comment on Proposal To Exempt Federal Reserve Banks From Sections 4d and 22 of the CEA

Posted in CFTC, Derivatives
On June 2, the Commodity Futures Trading Commission proposed to exempt Federal Reserve Banks that provide customer accounts to systematically important derivatives clearing organizations (SIDCOs) from Sections 4d and 22 of the Commodity Exchange Act (CEA). As a result, Federal Reserve Banks would be permitted to hold cash, securities and property deposited into a customer… Continue Reading

CFTC Proposes to Amend RTO-ISO Order

Posted in CFTC
The Commodity Futures Trading Commission has proposed to amend its order exempting specified electric energy-related transactions administered by regional transmission organizations (RTOs) and independent system operators (ISOs) from certain provisions of the Commodity Exchange Act (CEA). As set forth in the order, these transactions currently are exempt from all provisions of the CEA with the… Continue Reading