CFTC Rules

CFTC’s Division of Clearing and Risk Provides No-Action Relief to Certain Foreign Financial Institutions From Swap Clearing Requirements

On November 7, the Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) published Staff Letters 17-57, 17-58 and 17-59 (Staff Letters), which provided Banco Centroamericano de Integración Económica, the European Stability Mechanism, and the North American Development Bank, respectively, with no-action relief from the swap clearing requirements set forth in Section 2(h)(1) […]

CFTC Issues Order Permitting the CME to Commingle Certain Customer Funds

The CFTC issued an amended order that allows the Chicago Mercantile Exchange, a derivatives clearing organization (“CME”), to commingle certain customer funds used to margin, secure, or guarantee futures contracts, with customer funds related to contracts that are listed or will be listed on the Dubai Mercantile Exchange (“DME”). The order was expanded to include certain DME-listed products in […]

CFTC Division Of Clearing And Risk Determines Variation Margin Payments Are Settlements

The CFTC Division of Clearing and Risk (“DCR”) issued an Interpretive Letter clarifying that variation margin (“VM”) for cleared swap positions constitutes the daily settlement of exposure and not collateral under the Commodity Exchange Act (“CEA”). In the letter, the DCR explained that VM for cleared swaps may be transferred under either of two separate legal models: […]

CFTC Clarifies That Variation Margin Constitutes Settlement

The Division of Clearing and Risk (DCR) of the Commodity Futures Trading Commission has issued an interpretive letter clarifying that payments of variation margin, price alignment amounts and other payments in satisfaction of outstanding exposures on a counterparty’s cleared swap positions constitute “settlement” under the Commodity Exchange Act (CEA) and CFTC Regulation 39.14. The CEA […]

CFTC to Delay De Minimis Decision Another Year, Giancarlo Says

Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo said Wednesday he will request the regulatory agency postpone a decision on the de minimis threshold by a year, effectively delaying implementation until the end of 2018. In testimony before the House Committee on Agriculture, Giancarlo said he wants CFTC to “not just resolve” the de minimis […]

CFTC Chair Giancarlo: Embracing Blockchain Is in the ‘National Interest’

That’s according to J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), who issued the bold proclamation in remarks at a gathering of government technology executives in Washington, D.C. Wednesday morning. But while the blockchain industry has been encouraging regulators and government agencies to embrace the technology for years, this acknowledgment might have more oomph behind […]

Federal Court Rules Layering Can Be Market Manipulation

The US District Court in New York hearing the enforcement action by the Securities and Exchange Commission against Lek Securities and Samuel Lek, its 70 percent owner and chief executive officer (collectively, the “LEK Defendants”), denied the defendants’ motion to dismiss, ruling that layering and cross-market manipulation as alleged by the SEC in its complaint […]

CFTC fills vacancies with new commissioner, chief economist

Earlier this month, Brian Quintenz was officially sworn in to serve as a commissioner on the Commodity Futures Trading Commission, the federal agency that oversees the commodity futures, options and swaps industry. His term expires in April 2020. “I am honored to be among the first to congratulate Brian on joining the Commission,” said Chairman […]

CFTC’s Division of Market Oversight Initiates Review of Swap Reporting Rules

The Division of Market Oversight of the Commodity Futures Trading Commission announced a “comprehensive review” of its swap data reporting requirements. DMO’s review will be conducted in two parts. First, the Division will examine swap data repositories’ operations, with emphasis on how SDRs validate incoming data and counterparties confirm data at SDRs. Secondly, the Division […]

CFTC Launches Review of Swap Reporting Regulations

On July 10, 2017, the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission (CFTC or Commission) announced the launch of a comprehensive review of the swap data reporting regulations1 adopted by the Commission under the Dodd-Frank Act.2 The review is a response to ongoing issues related to swaps data collected by swap data repositories […]