On March 28 2016 the US Commodity Futures Trading Commission (CFTC) approved a final rule that would allow a foreign natural person applying for CFTC registration to complete and submit a criminal history background check as an alternative to submitting fingerprints.
The Commodity Futures Trading Commission (CFTC) proposed a rule offering an alternative to the requirement for foreign natural persons to provide fingerprints when applying for CFTC registration. Under the proposal, any such person's registered firm may complete a criminal history background check instead of submitting fingerprints.
The Commodity Futures Trading Commission (CFTC) has issued an order under the Commodity Exchange Act delegating to the National Futures Association (NFA) certain reporting and administrative responsibilities. Among other things, the NFA will receive, review and maintain notices of swap valuation disputes in excess of $20 million filed by swap dealers and major swap participants pursuant to CFTC Regulation 23.502(c).
The Commodity Futures Trading Commission (CFTC) Division of Market Oversight has extended no-action relief originally provided in CFTC Letter 13-41. The letter permits the masking of certain reportable identifying information in required reports in light of privacy, secrecy and blocking laws in certain jurisdictions.
The Commodity Futures Trading Commission has launched a new website to provide the public with information about whistleblower rights and protections and to allow the public to submit tips about potential violations of the Commodity Exchange Act online.
The Commodity Futures Trading Commission (CFTC) has granted permanent registration to 18 swap execution facilities that trade interest rate swaps and credit default swaps, all of which were previously operating under temporary registration status. The CFTC continues to review the registration of five remaining swap execution facilities that are currently operating under temporary registration status.
The Farm Credit Administration, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Federal Reserve Board and the Office of the Comptroller of the Currency recently jointly issued a final rule establishing margin requirements for uncleared swaps. Both the final rule and interim final rule will be effective from April 1 2016. The final rule will be phased in from September 1 2016 to September 1 2020.
The US Commodity Futures Trading Commission Division of Market Oversight has extended existing time-limited no-action relief for swaps executed as part of certain package transactions that currently receive relief from the requirement that such swaps be executed on a designated contract market or swap execution facility under CFTC Letter 14-137.
Retail customers investing in the foreign exchange market face heightened risks, including the risk of losses incurred by minor price movements in the market. In light of this, the US Commodity Futures Trading Commission recently approved rule amendments and a new interpretive notice filed by the National Futures Association, in order to increase protection for retail customers of forex dealer members.
The US Securities and Exchange Commission recently took several incremental steps towards completing its regulatory framework for security-based swap dealers and majority security-based swap participants. It unanimously adopted final rules providing the registration process for security-based swap entities, including the detailed forms that registrants will be required to file, and agreed to establish a disqualification waiver process.
The Commodity Futures Trading Commission has taken another step in refining its framework for cross‑border activities, with a new set of proposed rules on the cross‑border application of margin requirements for uncleared swaps. The proposal reflects certain aspects of the cross‑border approach proposed by the US prudential regulators in their parallel proposed rules with respect to uncleared swap margin for swap entities.
The Commodity Futures Trading Commission (CFTC) Division of Market Oversight recently issued a no-action letter extending time-limited relief to swap dealers and major swap participants from the obligation to report valuation data for cleared swaps. The division will not recommend that the CFTC takes action against swap dealers or major swap dealers for failing to comply with its requirements in that regard.
The Securities and Exchange Commission has issued a pair of rule proposals which, when taken together, suggest some of the strongest regulatory interest to date in how derivatives are used in the asset management industry. Both proposals introduce significant changes in the public reporting of the use of derivatives by asset managers. They therefore can be expected to be the subject of lively commentary going forward.
The US Commodity Futures Trading Commission Division of Swap Dealer and Intermediary Oversight recently issued no-action relief from introducing broker and commodity trading adviser registration to persons located outside the United States that facilitate swap transactions for international financial institutions that have offices in the United States. The relief granted is consistent with prior treatment of international financial institutions.
The Commodity Futures Trading Commission and the Securities and Exchange Commission recently issued an interpretation concerning forward contracts with embedded volumetric optionality. The interpretation identifies when an agreement, contract or transaction would fall within the forward contract exclusions from the 'swap' and 'future delivery' definitions in the Commodity Exchange Act.
The Securities and Exchange Commission recently adopted Regulation SBSR, the final rule regarding reporting of security-based swap information to registered swap data repositories and the public dissemination of security-based swap transaction, volume and pricing information by registered swap data repositories. The SEC simultaneously proposed certain amendments to the regulation.
The US Commodity Futures Trading Commission recently reopened the comment periods for two position limit draft rulemakings for an additional 30 days, in order to accommodate questions and comments that may have arisen from a February Energy and Environmental Markets Advisory Committee meeting.
Prudential regulators have proposed rules regarding margin requirements for uncleared swaps which would apply to swap dealers, security-based swap dealers, major swap participants and major security-based swap participants. The Commodity Futures Trading Commission has proposed rules for parties outside the jurisdiction of the prudential regulators. Both sets of rules are substantially similar and reflect international standards.
The Securities and Exchange Commission has published final rules regarding security-based swap data repository registration and security-based swap reporting in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new regulation is part of the overall regulatory agenda to improve transparency in the over-the-counter derivatives markets.
The Commodity Futures Trading Commission (CFTC) recently issued CFTC Letter 15- 03, which provides additional time for reporting parties to comply with certain reporting requirements of the ownership and control final rule. The final rule requires the electronic submission of trader identification and market participant data reporting forms.