Tag Archives: CFTC

2015 CFTC Regulatory Agenda

As 2015 is now underway, we wanted to highlight some of the potential regulatory developments from the CFTC that may arise in the new year. Overall we expect 2015 to be a year of continued CFTC implementation of the Dodd-Frank rules and related "tweaks" to those rules to address the concerns of end-users and market participants.… Continue Reading

Comparing Collateral Segregation Regimes for Uncleared Swap Margin

The proposed margin rules from the CFTC and the prudential regulators, when considered alongside the existing CFTC collateral segregation rules, present the potential for three different collateral segregation regimes applying to initial margin posted to a swap dealer. To compare the differences, we have created a chart of the three collateral segregation regimes.… Continue Reading

Approaching Ambiguities in the Financial Entity Definition

The third installment of our ongoing series on the 2014 CFTC Reauthorization Act covers a potential change to the definition of a "financial entity", which has been a particularly troublesome and confusing definition for end-users, and the banks that enter into swaps with them. In addition, the CFTC may be able to address the confusion through its rule making and interpretations, without the need for a legislative change.… Continue Reading

CFTC Approves Important Rule Amendment for Government-Owned Utilities and Their Swap Counterparties

On September 17, 2014, at the first Open Meeting of the Commodity Futures Trading Commission chaired by Timothy Massad, the CFTC approved an important amendment to its Dodd-Frank Act rules for government-owned electric and natural gas utilities and their swap counterparties. The rule amendment provides a permanent regulatory fix to a serious problem for utility special entities arising out of the CFTC rules published in 2012 defining which entities must register with the CFTC as "swap dealers."… Continue Reading

CFTC Staff Provides JOBS Act Harmonization Exemptive Relief

Attention hedge funds, private equity funds, venture capital funds and other private funds. This evening, the CFTC Division of Swap Dealer and Intermediary Oversight issued CFTC Letter 14-116 providing exemptive relief (for some funds) from the general solicitation restrictions in CFTC Rules 4.7 and 4.13(a)(3) to harmonize the CFTC rules with the SEC rules changes arising from the Jumpstart Our Business Startups Act. Until now, many private funds have been unable to take advantage of provisions in the JOBS Act permitting general solicitation of investors due to restrictions in CFTC Rules 4.7 and 4.13(a)(3).… Continue Reading

Attention Mutual Funds–Potential Relief for CPO and CTA Regulation in the 2014 CFTC Reauthorization Act

As the second part of our ongoing series on the 2014 CFTC Reauthorization Act, we wanted to highlight what could become important relief for mutual funds and their investment advisers with respect to registration as commodity pool operators or commodity trading advisers.… Continue Reading

The 2014 CFTC Reauthorization Act: An Ongoing Series

In late June, the U.S. House of Representatives passed a bill to reauthorize the CFTC, HR 4413, which includes a number of revisions to the Dodd-Frank Act and CFTC regulations. Most of these proposed changes are an attempt to limit some of the added regulatory burden for various swap end-users. We are beginning a series of posts that will further analyze the 2014 CFTC Reauthorization Act.… Continue Reading

Commissioner Scott O’Malia to Become CEO of ISDA – Will ISDA Increase its Focus on the Energy Industry, Commercial Market Participants and Physical Commodity Markets?

Following the CFTC announcement that Commissioner Scott O'Malia has resigned his position effective August 8th, ISDA has now announced that O'Malia will become its CEO effective August 18th. O'Malia's leadership of ISDA could be a particularly important development for those in the energy industry and other commercial market participants, including "end-users."… Continue Reading

CFTC Extends Comment Period to August 4th for Aggregation and Position Limits Proposals

By Crystal Travanti and Tom Watterson In the ongoing saga of the CFTC Position Limit Rules, the CFTC extended the comment periods for the Proposed Aggregation Rules and the Proposed Position Limits Rules until August 4, 2014. The Proposed Position Limits Rules establish speculative position limits for 28 exempt and agricultural commodity futures and options contracts and the physical commodity swaps that are … Continue Reading

Upcoming CFTC Roundtables: CPO Risk Management and End Users

By Andrew Cross and Tom Watterson We want to let everyone know about two upcoming CFTC Roundtables, the dates and topics are below. March 18th– Risk management procedures for CPOs, including managing investment risk, operational risk, and compliance or regulatory risk. April 3rd– Dodd-Frank issues for end-users of swaps, including recordkeeping under CFTC Rule 1.35, forward … Continue Reading

Bitcoin and the CFTC: “Spot”ing the Jurisdictional Hook

By Todd Zerega and Tom Watterson In the past week, Bitcoin derivatives have been making news. A Bloomberg article highlighted Bitcoin derivatives and platforms for such products, and in an interview on February 28, the CME Group chairman and president, Terry Duffy, announced that the CME Group is beginning to take a preliminary look into … Continue Reading

Regulating Bitcoins: CFTC vs. SEC?

By Todd Zerega and Tom Watterson In the past year, Bitcoin has exploded into the public limelight and in the process gained the attention of U.S. regulators. A full discussion of Bitcoin could make up an entire book (for a thorough discussion, see FT Alphaville’s BitcoinMania series here). For the purposes of this post, Bitcoin … Continue Reading

CFTC Files a General Creditor Claim in MF Global Liquidation

You just don’t see this everyday, so we thought that we would point it out to you. On June 1st, the CFTC filed a Proof of Claim (available here) in the MF Global, Inc. SIPA liquidation. The claim was filed on a "contingent, unliquidated" basis, which essentially means – I may be a creditor someday and, if … Continue Reading

The October 26h Public Meeting: CFTC Rule 1.25, Anti-Manipulation, Disruptive Trading

Here is your report from this morning’s meeting – apologies upfront for length, but we wanted you to benefit from a full overview. Next three meetings will be: November 10th, November 19th and December 1st. OPENING REMARKS All of the Commissioners expressed concern about lack of adequate funding. Several commissioners also indicated the significance of … Continue Reading
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