On 27 June, 2013, the CFTC filed its long awaited complaint related to the October 2011 MF Global collapse, naming MF Global Inc., (the futures commission merchant holding customer accounts)(“MFG”), its parent company, MF Global Holdings Ltd.(“Holdings”), John Corizine, CEO and Chairman of Holdings and CEO of MFG, and Edith O’Brien, Assistant Treasurer and who […]
Articles in June 2013
Bridging the Week, June 17-21, June 24, 2013
This week Bridging the Week discusses: 1. My trip last week to DC to meet with CFTC Commissioners and staff and other persons related to topical issues effecting the exchange-traded derivatives industry; 2. CFTC sues ABN Amro Chicago Clearing; 3. NYS sues Deloitte LLP; 4. MAS new rules on IT systems; and 5. Critical upcoming […]
Compliance Weeds: CME Proposes New Guidance Regarding Wash Trades Effective September 9, 2013 Pending CFTC Approval
An on again, off again, and now on again CME proposed Advisory Notice providing guidance on wash trades was re-submitted to the CFTC on 9 July with a proposed effective date of 9 September. What does it mean?
Valuable Lessons Learned: CFTC Sues ABN AMRO for Segregated and Secured Funds and Net Capital Violations. $1 Million Fine Paid.
Yesterday, the CFTC filed and settled charges against ABN AMRO Clearing Chicago LLC for failing to segregate or secure sufficient customer funds on four occasions from March 2009 through August 2011; for failing to meet minimum net capital requirements as of month-end April 2011; and for not being to able to calculate and generate the […]
Bridging the Week: June 10-14 and 17, 2013
This week, Bridging the Week reviews, among other matters: SEC lawsuit and settlement with CBOE; ISDA and FOA’s adoption of a Cleared OTC Addendum; House passage of the Swap Jurisdiction Certainty Act; MFA request to the CFTC to use third party custodial accounts for futures; ASX’s move to clear certain Australian-based IRS; and Commissioner Bart […]
Bridging the Week: June 3-7 and June 10, 2013
Topics covered this week are: Mandatory Clearing for Category 2 Financial Institutions begins June 10; NFA Extends its Residual Interest Financial Rules for FCMs to their Cleared Swaps Customer Accounts’ environment; CFTC v. US Bank, NA: Lawsuit filed; Bloomberg v. CFTC: Lawsuit dismissed; New ESMA Q&A’s regarding EMIR posted; and Status of Possible Postponement of […]
My View: Coordinating with Foreign Regulators — It’s not Optional; it’s the Law!
Gary Gensler, Chairman of the of the CFTC, appears to imply that when July 12 comes and go, the CFTC unilaterally among the G-20 jurisdictions will institute final guidance on cross border swaps. For this he has been roundly criticized both by industry groups (see SIFMA response below to the Chairman’s latest statements regarding such cross […]
Valuable Lessons Learned: CFTC Sues Bank That Held PFG Funds
The CFTC today sued US Bank NA, a bank that held customer funds of Peregrine Financial Group, Inc, for unlawfully using and holding customer segregated funds. According to the CFTC, Russell Wassendorf, the owner of PFG misappropriated more than $215 Million of customer funds from PFG over two decades. It claims, that US Bank knowingly […]
Bridging the Week May 27-31 and June 3, 2013
This week Bridging the Week reviews, among other things: 1. A CFTC Fine of $1.5 Million against FC Stone for failing to have adequate risk controls; and 2. An extension by the CFTC’s Division of Clearing and Intermediary Oversight until September 1, 2013 for FCMs to come into full compliance with that aspect of their […]