The CFTC today filed charges against and settled with FC Stone for failing to maintain adequate customer credit and concentration risk policies during 2008-2009 that allowed one customer account to sustain a loss of approximately $127 million. The CFTC charged FC Stone under its “failure to supervise” regulation (Rule 166.3), assessed a penalty of $1.5 […]
Articles in May 2013
Compliance Weeds: NFA Proposes Guidance on Exact Nature of Internal Control Systems FCMs Must Maintain
In another post-MF Global development, the NFA on 22 May 2013 submitted to the CFTC for its approval proposed guidance related to internal control systems that must be adopted by all FCMs. Approval is expected. In submitting this guidance, NFA proposed certain minimum standards that must be part of each FCM’s internal control system, which […]
Bridging the Week: 20-24 May and 27 May 2013
This week Gary reviews among other things: 1. NFA proposed guidance on minimum standards for internal controls for FCMs; 2. the status of the 1 June 2013 deadline for FCMs fully to comply with Rule 1.73; 3. an investigation by the HK SFC into the defunct HKMEX; and 4. the CFTC’s Inspector General report on […]
News Development: Senator Richard Shelby Issues CFTC Inspector General Report on the CFTC’s Oversight and Regulation of MF Global, Inc.
Today Senator Richard Shelby made public a CFTC Inspector General report dated 16 May 2013 regarding the Commission’s oversight and regulation of MF Global, Inc. This review had been requested by Senator Shelby on 30 November 2011. As part of its review, the IG reviewed, among other things: the CFTC’s role overseeing and regulating MFGI; […]
Bridging the Week 13-17 and 20 May 2013
This week Gary discusses the CFTC’s final SEF Core Principles issued 16 May as well as licensing requirements adopted by Germany on 15 May for High Frequency Traders — whether located in or out of Germany, among other topics:
News Development: Finally the CFTC Approves Core Principles for SEFs
Today the CFTC announced issuance of long-expected core principles for Swap Execution Facilities. These principles will require, among other things, SEFs to maintain minimum trading functionality (ie, an order book) for all its market participants, and allows for trading through requests for quotes. Unlike the Commission’s original proposal, the final core principles require that all […]
Bridging the Week 6 - 10 May: 13 May 2013
In this week’s installment of Bridging the Week learn about: 1. the CFTC’s public meeting on 16 May where they propose to release their SEF rules, finally; 2. two FINRA actions announced last week, one relevant to all CCOs, and the other about e-mail retention vulnerabilities that all financial services’ firms should review; 3. another […]
Valuable Lessons Learned (Email Retention): FINRA Fines 5 ING Firms related to Email Review and Retention Violations
FINRA has fined five ING firms USD 1.2 Million for various email retention and review violations. According to the relevant FINRA Acceptance, Waiver and Consent Order (dated 15 February 2013), at various times from 2005 through 2011, one or more of these entities failed, among other things, to: transfer from an active server to an […]
Helpful to Getting the Business Done: CFTC Grants More Relief to FX Swap Dealers
During the first two days of May, the CFTC’s Division of Swap and Intermediary Oversight granted certain relief related to swap dealers and major swap participants engaging in certain FX transactions. A few days earlier, on the eve of 1 May, DSIO granted certain relief to SDs and MSPs engaging in FX prime brokerage transactions involving […]
News Development: April Showers bring…another lawsuit against the CFTC by DTCC Data Repository and DTCC
According to the springtime saying, April showers bring May flowers. However, in the United States District Court for the District of Columbia, an April lawsuit by Bloomberg LP against the Commodity Futures Trading Commission, has been followed by another lawsuit against the CFTC this first week of May by DTCC Data Repository and DTCC. Each […]