Day: 19 December 2016

FX Industry to Face Deadline Challenges in 2017

FX market participants face numerous challenges next year in adhering to regulatory deadlines, according to experts on a recent Profit & Loss webinar.

One of the more immediate regulatory deadlines that firms are currently preparing for is on March 1, 2017, when the new variation margin requirements for non-cleared derivatives come into force.

But as Gabriel Rosenberg, a partner at Davis Polk pointed out, there are a number of factors within these requirements that are making them difficult for firms to comply with, even in instances where they are already exchanging variation margin with their counterparties.

And Finally…

In such a historic year – for it has been that – it feels appropriate to have an Accolade dedicated to the shock of the year. I should point out this is a market shock – not the kind felt by much of the world as the US presidential election results unfolded.
In a year that had flash crashes, very large movements in specific currency pairs and plenty of “blink and you’ll miss it” moments, competition for the “What the…? Moment of the Year” is fierce.

Fraud with a Difference: Trade with Your Mum

A US District Court Judge has found that an employer effectively stole $300,000 from her employer by trading non-competitively on CME against an account held by her mother.
In deciding an action brought by the US Commodity Futures Trading Commission (CFTC), Judge Sara Ellis fined Yumen Li and Kering Capital – a firm established by her mother, $1.2 million, including a restitution of the $300,000.
The CFTC charged Li and Kering with fraud, fictitious sales, and non-competitive transactions in connection with a series of transactions engineered by Li on CME’s electronic trading platform.