On June 9, at the request of the Futures Industry Association, the International Swaps and Derivatives Association, and the Securities Industry and Financial Markets Association, the Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) and Division of Market Oversight (DMO) announced that they have extended no-action relief that was set to expire on June 30.
Continue Reading CFTC Extends No-Action Relief to Registrants In Response to COVID-19 Pandemic
NFA and FIA Launch Training Course on Safeguarding Customer Funds
By Kevin M. Foley & James M. Brady on
Posted in CFTC
National Futures Association (NFA), Futures Industry Association (FIA) and other industry professionals have collaborated to launch an FIA training course on safeguarding customer funds. The course, which is designed to assist futures commission merchants in meeting their training requirements under Commodity Futures Trading Commission Rule 1.11, covers the basics of segregation, residual interest, investment of…
FIA Publishes Report on Clearing Members’ Brexit Implementation Plans
On June 5, the Futures Industry Association (FIA) published a report summarizing the responses to its latest survey and setting out its recommendations to United Kingdom (UK) and European Union (EU) policymakers. The survey concerns Brexit implementation plans for the client clearing businesses of FIA members.
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CFTC Staff Issues Interpretive Guidance Clarifying Commodity Trading Advisor Registration Requirements Resulting from the European Union’s MiFID II Research Compensation Provisions for Investment Managers
By Kevin M. Foley & Timothy D. Nolan on
Posted in CFTC, Derivatives
On December 11, at the request of the Futures Industry Association (FIA), the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued an interpretive letter regarding the “solely incidental” exclusion from registration as a commodity trading advisor (CTA). Under the relevant provisions of the Commodity Exchange Act and CFTC rules, a futures commission merchant (FCM), swap dealer (SD) or introducing broker (IB) that provides commodity trading advice is required to be registered separately as a CTA unless such advice is “solely incidental” to the conduct of such registrant’s business as an FCM or SD (or “solely in connection with” such registrant’s business as an IB).
Continue Reading CFTC Staff Issues Interpretive Guidance Clarifying Commodity Trading Advisor Registration Requirements Resulting from the European Union’s MiFID II Research Compensation Provisions for Investment Managers
FIA Publishes Letter Opposing Relocation of Euro-Denominated Derivatives Clearing
On June 6, the Futures Industry Association (FIA) published a letter addressed to European Commission (EC) Vice–President Valdis Dombrovskis, detailing its concerns about the potential approach of forced relocation of euro-denominated derivatives clearing to the European Union. Forced relocation was raised as an option for ensuring the protection of the financial stability and monetary policy of the European Union in the EC’s May 2017 communication on certain challenges for critical financial market infrastructures and for further developing the Capital Markets Union.
Continue Reading FIA Publishes Letter Opposing Relocation of Euro-Denominated Derivatives Clearing
FIA Calls for Transitional Period for Commodity Firms Under MiFID II
By Nathaniel Lalone on
Posted in EU Developments, Financial Markets
As originally reported by Risk.net (subscription required) on May 5, the Futures Industry Association (FIA) has asked HM Treasury to allow for a transitional period for commodity firms under the United Kingdom’s implementation of the revised Markets in Financial Instruments Directive (MiFID II).
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CFTC Issues No-Action Relief Relating to Risk Disclosure Statements for Non-Institutional Customers
Posted in CFTC, Derivatives
On November 30, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight granted no-action relief for futures commission merchants (FCM) and introducing brokers (IB) consolidating risk disclosure statements sent to non-institutional customers (customers that are not eligible contract participants).
CFTC regulations require an FCM or IB to provide each non-institutional customer with …
FIA Market Technology Division Releases Recommendations to Prepare for Leap Second Event
By Kevin M. Foley on
Posted in CFTC
The Futures Industry Association’s (FIA) Market Technology Division (MTD) published a report of recommendations to prepare the industry for the leap second event on June 30.
A leap second is the addition of an extra second at the end of the day to realign the Coordinated Universal Time standard with mean solar time. Periodically adding the leap second corrects for irregularities in the earth’s rate of rotation.
Continue Reading FIA Market Technology Division Releases Recommendations to Prepare for Leap Second Event