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.
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distributed ledger technology
CFTC Announces Technology Advisory Committee Meeting
By Kevin M. Foley & Stanley V. Polit on
Posted in CFTC
On June 29, the Commodity Futures Trading Commission’s (CFTC) Technology Advisory Committee (TAC) announced that it will hold a public meeting on July 16. At this meeting, the TAC will hear presentations from the TAC subcommittees on Automated and Modern Trading Markets, Distributed Ledger Technology and Market Infrastructure, Virtual Currencies and Cybersecurity.
The meeting will…
CFTC Announces Technology Advisory Committee Meeting
By Kevin M. Foley & Dina Wegh on
Posted in CFTC, Digital Assets and Virtual Currencies
The Commodity Futures Trading Commission (CFTC) has announced that its Technology Advisory Committee (TAC) will hold a meeting on Friday, October 5. The meeting will be held in the Conference Center at the CFTC’s Washington, DC headquarters from 10:00 am – 3:30 pm ET. Representatives of several TAC subcommittees, including the Automated and Modern Trading…
Treasury Committee’s Virtual Currencies Inquiry Publishes FCA and Bank of England Evidence
On May 22, the UK’s House of Commons Treasury Committee (Treasury Committee) updated its webpage on its inquiry into what it refers to as “digital currencies.” The webpage now provides links to written evidence the Treasury Committee has received from the UK Financial Conduct Authority (FCA) and the Bank of England (BoE) in which they outline their work in this area.
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CFTC Issues Primer on Cryptocurrencies
By James M. Brady & Kevin M. Foley on
Posted in CFTC
The Commodity Futures Trading Commission’s LabCFTC has issued a primer on cryptocurrencies and distributed ledger technology. The primer is the first in a series that is intended to provide the public with educational information on financial technology innovation.
In the primer, LabCFTC highlights various risks inherent in cryptocurrencies, including operational risks, cybersecurity risks, speculative risks …
FINRA Issues Report on Implications of Blockchain
Posted in Broker-Dealer
On January 18, the Financial Industry Regulatory Authority, responding to increased industry interest in distributed ledger technology (DLT) known as “Blockchain,” issued a report on the uses and potential implications of this technology in the securities industry.
The report provides an overview of DLT and its applications in various markets as well as discussing governance, operational structure and security concerns. The report also discusses regulatory challenges for broker-dealers, noting that a DLT network may create new ways to hold customer funds, impact a member firm’s net capital requirements, afford market participants the ability to develop and maintain certain records on the network itself, and alter clearance and settlement processes.
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