Tag: CFTC

CFTC

FIAPTG, CFTC Commissioners, Slam Commission Approval of ICE Speed Bump

The Futures Industry Association’s Principle Traders Group (PTG) has slammed the decision by the Commodity Futures Trading Commission (CFTC) to allow ICE to self-certify its Passive Order Protection mechanism, more commonly known as a speed bump. The PTG was joined in its criticism of the decision, which has already caused significant controversy in futures circles, […]

Trading Firms Cry “Last Look” in the Futures Market

As a futures exchange proposes a new speed bump mechanism, a number of market participants are coming out in opposition to it. Some of the arguments they’re making will sound familiar to those in the FX markets, says Galen Stops. On February 1 the Intercontinental Exchange (ICE) put the cat amongst the proverbial pigeons by […]

And Another Thing…

Here are three statements. “Fragmentation exacerbates the already inherent challenge – adequate liquidity – and increases market fragility as a result.” “Fragmentation leads to smaller, disconnected liquidity pools and less efficient and more volatile pricing.” “Divided markets are more brittle, with shallower liquidity, posing a risk of failure in times of economic stress or crisis.” […]

CFTC Provides Extended Brexit Relief

The Commodity Futures Trading Commission’s (CFTC) Divisions of Swap Dealer and Intermediary Oversight (DSIO), Market Oversight (DMO), and Clearing and Risk (DCR), have announced they will grant no-action relief to provide greater certainty to the global marketplace in connection with the anticipated withdrawal of the UK from the European Union with or without a ratified withdrawal agreement.
“At a time of heightened market uncertainty caused by Brexit, this Commission has worked over the past several weeks to bring clarity to participants in global derivatives markets by a series of separate actions and statements with its regulatory counterparts in other jurisdictions,” says CFTC chairman Christopher Giancarlo.

CFTC Votes to Provide Greater Brexit Certainty

The Commodity Futures Trading Commission (CFTC) has passed by unanimous vote, a provision to provide greater certainty to the global marketplace in the event of a “no-deal Brexit” precipitated by the withdrawal of the UK from the European Union without a negotiated withdrawal agreement.
“At a time of heightened market uncertainty caused by Brexit, this Commission has worked over the past several weeks to bring clarity to participants in global derivatives markets by a series of separate actions and statements with its regulatory counterparts in London, Brussels and Singapore,” says CFTC chairman Christopher Giancarlo.

CFTC Welcomes EU EMIR Agreement

The political agreement reached last week in Brussels to implement the EMIR 2.2 regulation has been welcomed on both sides of the Atlantic. The updated regulation will broaden the role of the European Securities and Markets Authority (ESMA) to include more supervisory tools and on-site inspections; introduce a tiered system of recognition for offshore CCPs depending on their product set and systemic importance to the EU; and introduces the requirement that systemically important non-EU CCPs establish themselves in the EU if they seek to access the single market.

CFTC Appoints FX Veteran to Market Oversight Division

The US Commodity Futures trading Commission (CFTC) has named former Goldman Sachs and Deutsche Bank FX prime brokerage head Mel Gunewardena as deputy director of the Market Intelligence Branch (MIB) and CFTC’s chief market intelligence officer.
Gunewardena has also held roles at State Street and was a former co-managing partner of G Capital Fund Management. Gunewardena has held numerous senior global roles in global markets trading, finance, over-the-counter, and derivatives clearing and has significant international experience having worked in Hong Kong and London, in addition to New York and Boston.

Former UBS Trader Fined by US Court for Spoofing

A US District Court in Connecticut has issued a Final Judgment and Consent Order against Andre Flotron, a former precious metals trader for UBS, requiring him to pay a $100,000 civil monetary penalty for spoofing and engaging in a deceptive or manipulative scheme through his spoofing in violation of the Commodity Exchange Act (CEA) and CFTC Regulations.
The Order also imposes a one-year trading and registration ban. Flotron was one of eight traders from three institutions charged by the Commodity Futures Trading Commission (CFTC) over a spoofing scheme.

Regulators Welcome EC’s Recognition of UK CCPs

The Bank of England, European Securities and Markets Authority (ESMA), and the US Commodity Futures Trading Commission (CFTC) have all welcomed the decision by the European Commission (EC) to adopt a temporary equivalence regime for central counterparties (CCPs) and Central Securities Depositories (CSDs).
ESMA says it supports continued access to UK CCPs, in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU. It adds it aims to recognise UK CCPs in a timely manner, as long as four recognition conditions under Article 25 of EMIR are met.

A Brave New World

At a recent OnTheBlock event in New York, Daniel Gorfine, chief innovation officer and director of LabCFTC, talked to Galen Stops, editor of Profit & Loss, about the challenges facing regulators overseeing crypto markets, why the rules in this space are often more clearly delineated than many will admit, and the key technology trends he sees shaping financial markets in the future.

Galen Stops: As a regulator, how does the CFTC approach the crypto space? Because it seems to me like there’s a fairly fine line to walk between allowing and encouraging innovation and new markets on the one hand, but ensuring that there are protections against potential bad actors on the other…