Tag: Commodity Futures Trading Commission

Commodity Futures Trading Commission

Bowen to Leave the CFTC

Sharon Bowen is leaving her position as a Commissioner at the US Commodity Futures Trading Commission (CFTC).

Bowen was sworn in as a Commissioner at the CFTC on June 9, 2014, for a five-year term.

Bowen chairs the CFTC Market Risk Advisory Committee (MRAC), and at a meeting of MRAC today, explained why she intends to leave her position at the CFTC two years before her term expires.

“With the departure of Chairman Massad, the work of this agency has been hampered by only having a two-person Commission, when we should be a five-person Commission. In fact, we have not been a five-person Commission since the departure of Commissioner O’Malia in 2014.

Former CFTC Commissioner Chilton Leaves DLA Piper

Bart Chilton has left his position at law firm DLA Piper, where he was a senior policy advisor. His next destination could not be determined by press time.

Chilton joined DLA Piper in April 2014, working in its corporate, finance and derivatives practice.

Prior to that Chilton spent seven years working as a Commissioner at the Commodity Futures Trading Commission (CFTC), after being nominated by President George W. Bush and confirmed by the US Senate in 2007 and then re-nominated by President Barack Obama and reconfirmed by the Senate in 2009.

Former MF Global CEO Handed $5m Fine

Former MF Global CEO, Jon Corzine, has been fined $5 million and banned from working as a Futures Commission Merchant (FCM).

The US Commodity Futures Trading Commission (CFTC) announced today that it has obtained a federal court consent order against Corzine requiring him to pay a $5 million civil monetary penalty for his role in MF Global’s unlawful use of customer funds totaling nearly $1 billion and for his failure to diligently supervise the handling of customer funds.

Under the terms of the order, Corzine cannot seek or accept, directly or indirectly, reimbursement or indemnification from any insurance policy with regard to the penalty amount.

Massad Officially Resigns as CFTC Chair

Timothy Massad has tendered his resignation as Chairman of the US Commodity Trading Commission (CFTC) to President Barack Obama, effective on January 20, 2017.

“For the past two-and-a-half years, I’ve had the privilege of working alongside the very talented CFTC staff, and I thank them for their dedication on behalf of the American people. I also want to express my appreciation to my fellow Commissioners, Sharon Bowen and Chris Giancarlo, for the constructive and collaborative engagement we have had throughout my tenure. I am also very grateful to President Obama for giving me the opportunity to lead this important agency,” said Massad in a statement issued today.

CFTC Hands SocGen Fine for FX Reporting Failure

The US Commodity Futures Trading Commission (CFTC) has fined Société Générale $450,000 for failures in the reporting of certain FX transactions.

The CFTC says that the French bank failed to properly report certain NDF transactions to a swap data repository (SDR), and failed to report to an SDR a large number of FX swap, FX forward, and NDF transactions in a timely manner, in violation of the Commodity Exchange Act (CEA) and CFTC Regulations.

herefore, the CFTC announced an order today requiring Société Générale to pay a $450,000 civil monetary penalty and to cease and desist from committing further violations of the CEA and CFTC Regulations.

How Will the Election Change the US Regulatory Landscape?

As FX markets continue to anticipate what will happen next following Donald Trump’s surprise victory in the US Presidential election, there could also be significant changes in the country’s regulatory landscape that financial services firms need to consider.

For starters, the Commodity Futures Trading Commission (CFTC) could look very different.

Historically, when there’s a transition of parties, the Chairman of the Commission has tendered their resignation on the inauguration day of the new President and then the remaining Commissioners vote amongst themselves for an acting chairman.

CFTC Staff Clash Over Automated Trading Rules

Staff at the Commodity Futures Trading Commission (CFTC) clashed over the supplemental proposal to the Automated Trading Regulation (RegAT), even though the proposals were ultimately approved today by the Commission.

In a meeting in Washington today CFTC Commissioner, Christian Giancarlo, who voted against the proposal, disagreed with Chairman Timothy Massad on a number of issues relating to RegAT.

The main point of contention was the access that the proposed rules would give the CFTC to automated trading firms’ source code, which has drawn some strong criticism from market participants and industry bodies throughout this year.

CFTC Takes Action Against FX CTA

The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against a CTA claiming to have grown 2,675% in two years with a 99.55% trade win ratio.

Jamal Vance and All City Investments (All City) are the defendants in the action, they are charged with solicitation fraud in connection with an FX scheme and with failure to register as Commodity Trading Advisors (CTAs). According to the CFTC’s complaint, the defendants solicited customers on their website to open and deposit funds into their own accounts with a brokerage services firm that provides an online forex trading platform, and to sign a limited power of attorney form, which designated All City as that customer’s agent and attorney-in-fact for the purpose of buying and selling margined FX transactions for the customer’s account.

CFTC Issues CCP Recovery, Wind-Down Guidance

The US Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) has issued guidance to clearinghouses to further the development of recovery plans and wind-down Plans.  The CFTC says that for clearinghouses, or Derivatives Clearing Organisations (DCOs), the development of these plans is “a critical element of risk management and contingency planning to […]