All CFTC articles – Page 6

  • Blog post

    CFTC plan to access source code slammed as regulatory overreach


    To improve oversight of high-speed, automated trades the CFTC has a plan to access the source code that powers them. Critics say the idea undermines due process and has unnerving implications for how other regulators obtain data.

  • Article

    New SEC rules for securities clearing agencies may benefit EU banks


    The SEC’s new rules for enhanced operational and governance standards for systematically important securities clearing agencies might just save EU banks billions of dollars in capital surcharges. Joe Mont reports.

  • Blog post

    CFTC wants to beef up whistleblower incentives


    The Commodity Futures Trading Commission is looking to beef up its enforcement efforts with proposed amendments to its whistleblower rules. The move comes, says Joe Mont, as the SEC’s whistleblower bounty program recently surpassed the $100 million mark.

  • Blog post

    EPA, CFTC agree to share data


    The Commodity Futures Trading Commission and the Environmental Protection Agency have entered into a Memorandum of Understanding that allows the agencies to share Renewable Fuel Standard data and analysis, including proprietary business information. Sharing this information, the agreement says, will allow the CFTC to assist the EPA with investigations into ...

  • Blog post

    CFTC approves substituted compliance framework with EU


    The Commodity Futures Trading Commission has approved a substituted compliance framework for dually-registered central counterparties, located in both the United States and European Union. European CCPs registered with the CFTC can now comply with its rules by meeting corresponding European Market Infrastructure Regulation requirements.

  • Blog post

    CFTC Still Waiting for Its Whistleblower Program to Bear Significant Results


    After four years, the CFTC has so far paid out just two whistleblower awards totaling $530,000 while incurring millions of dollars in expenses. The agency’s inspector general stated recently that it has opened a review to “to determine the reason, if any, for the limited number of CFTC whistleblower awards ...

  • Blog post

    J.P. Morgan to Pay SEC and CFTC $307 million for Disclosure Violations


    Two JP Morgan wealth management subsidiaries today agreed to pay a total of $307 million to the Securities and Exchange Commission and the Commodity Futures Trading Commission in joint enforcement actions for failure to disclose conflicts of interest to clients. Both the CFTC and SEC charged J.P. Morgan Securities (JPMS) ...

  • Blog post

    CFTC offers up cyber-security rules, margin requirements


    The Commodity Futures Trading Commission is seeking to amend existing regulations regarding cyber-security testing and safeguards for the automated systems used by the firms it regulates. New rules would specify testing frequency requirements and require covered firms to have certain tests performed by independent contractors. In a separate matter, it ...

  • Blog post

    CFTC Brings First Insider-Trading Case


    Until last week, the CFTC had never brought an insider-trading case for commodities trading. Indeed, the only example of insider commodities trading that most lawyers (or anyone else) could probably point to would be the ill-fated effort of the Duke brothers in the Eddie Murphy movie Trading Places. Four years ...

  • Blog post

    CFTC Makes it Official: Bitcoin is a Commodity


    Bitcoin, the controversial virtual currency vexing financial regulators, is now officially a commodity—at least in the eyes of the Commodity Futures Trading Commission. On Thursday, with the CFTC’s first ever enforcement action against an unregistered Bitcoin options trading platform, the agency designated the virtual currency, and potentially others like it, ...

  • Article

    How Can Compliance Manage Chat Risks? That’s Tough


    Image: As the financial sector embraces the speed and efficiency of instant messaging services, compliance officers have a new challenge: how to detect misconduct in real time, not in e-discovery after the fact. Vendors are rushing in with new products; the bad news is that regulators are looking into “chat ...

  • Blog post

    SEC Sets Swap Dealer Registrations, 'Bad Actor' Waiver Battle Looms


    The easy part: adopting new rules and a process for the registration of security-based swap dealers and major security-based swap participants. More controversial, is a new proposal, announced by the Securities and Exchange Commission on Wednesday, to give swap dealers the ability to do business with individuals and firms convicted ...

  • Blog post

    Volcker Offers Sweeping New Reform Ideas


    Image: Paul Volcker, the famed former Fed chairman and namesake of the most controversial rule in the Dodd-Frank Act, is proposing a slate of financial reform proposals that would merge the SEC and CFTC and create new regulatory agencies. The Volcker Alliance—a non-partisan, non-profit organization launched in 2013—issued a report ...

  • Article

    CFTC Case Against Kraft Puts Cos. on Hedge


    Image: A novel interpretation of the Dodd-Frank Act is rattling buyers of raw materials. The Commodities Futures Trading Commission is moving against Kraft Foods for a big bet in the wheat market, using a section of Dodd-Frank everyone previously assumed was intended to curb high-frequency traders. “The case shows that ...

  • Blog post

    CFTC Gives CCOs Extra 30 Days to File Annual Reports


    The Commodity Futures Trading Commission will give compliance officers an additional 30 days to file the annual reports required of swap dealers and major swap participants. The reports—which include an assessment of compliance resources and challenges—were initially due within 60 days of the fiscal year’s end. More inside.

  • Blog post

    CFTC Outlines Expectations for New Annual Reports from CCOs


    The Commodity Futures Trading Commission recently shed more light on the new annual reports that compliance officers at swaps dealers must now provide. The CFTC guidance outlines expectations for assessing a firm’s written policies and procedures, including the code of ethics and conflict-of-interest policies. Shortcomings must be explained in detail, ...

  • Blog post

    Budget Bill Targets Dodd-Frank’s Derivatives Restrictions


    Dec. 10—Seeking to avoid another government shutdown, the House has approved the fiscal year 2015 Omnibus Appropriations bill, legislation that will provide discretionary funding for the vast majority of the federal government for the remainder of the current fiscal year. Notable inclusions in the bill—now before the Senate—are a $150 ...

  • Blog post

    Toyota Motor Credit Probed for Lending Discrimination


    The Department of Justice and the Consumer Financial Protection Bureau last month launched an investigation against Toyota Motor Credit over allegations of auto-lending discrimination practices, Toyota announced in a recent Form 8-K with the Securities and Exchange Commission. According to the agencies, “such practices resulted in discriminatory pricing of loans ...

  • Blog post

    CFTC Dives Back into Position Limits, Reopens Comment Period


    Image: Dec. 2—The Commodity Futures Trading Commission is once again girding for battle over a controversial plan to impose position limits on futures contracts. On Dec. 3, notice was published in the Federal Register to announce the reopening of a public comment period on rulemaking that was put on hold ...

  • Blog post

    Banks Fined $4.3 Billion in Foreign-Exchange Probe


    In a highly-anticipated series of settlements, regulators from the United Kingdom, United States, and Switzerland today slapped six banks with a total of $4.3 billion in fines to resolve charges that they manipulated the foreign exchange currency-trading market. JPMorgan and Citibank will pay the largest total in fines of $1 ...