On this week’s podcast Colin Lambert casts his eye over the week’s news, before he is joined by Matthew Kulkin, partner at US law firm Steptoe, and former director of the CFTC’s Division of Swap Dealer and Intermediary Oversight, to discuss all matters regulatory. Lambert is pleased to find out that one of his observations […]
The US Commodity Futures Trading Commission (CFTC) has unanimously approved two proposed rules to revise CFTC regulations for swap data reporting, dissemination, and public reporting requirements for market participants. The Commission also unanimously approved re-opening the comment period of a proposed rule to amend certain agency regulations related to swap data repositories. All three measures […]
The US Commodity Futures Trading Commission (CFTC) has issued six banks with regulatory orders over reporting failures. The six banks; Bank of New York Mellon, HSBC, Natwest Markets, Northern Trust, PNC Bank and Societe Generale were collectively fined more than $6 million over the failures – Northern Trust and SocGen were also charged with failure […]
Bloomberg today announced that it has acquired RegTek.Solutions, a provider of global regulatory reporting software solutions. The acquisition will expand the range of regulatory reporting services offered by Bloomberg, the firm says, and deliver a fully integrated and comprehensive service that supports compliance with current and upcoming regulatory reporting requirements across multiple jurisdictions around the […]
The Futures Industry Association (FIA) has published a new position paper that recommends a number of changes to how exchange traded derivatives (ETDs) are reported under European regulation. The FIA says in the paper that it fully supports the efforts by regulatory authorities to make the derivatives markets more transparent and safe, adding that the […]
Today oneZero Financial Systems has released a new tool, called Market Data Sentinel, which automates the reporting, monitoring, accounting and compliance of exchange market data used on the MetaTrader 5 platform.
“We are excited to introduce Market Data Sentinel to address a real market need around reporting and monitoring exchange market data on MetaTrader 5,” says Andrew Ralich, CEO of oneZero. “All MT5 brokers, whether they currently use oneZero’s Liquidity Hub or not, can take advantage of this powerful solution to a previously time-consuming manual workflow process.”
He adds: “Market Data Sentinel represents our continued response to the needs of both our clients and the market. We always look for ways to leverage our superior technology development resources in support of important business needs that will enable our clients to focus on what they do best and grow their business, while relying on oneZero to make their processes more efficient.”
FIA and the FIA Principal Traders Group (FIA) have submitted a detailed letter in reposnse to a US Commodity Futures Trading Commission (CFTC) proposed rule making that urges the Commission to retain the current $8 billion de minimis threshold for swap dealer registration.
The associations also suggest the CFTC modifies the calculation methodology to “better align it with the goals of a well-regulated derivatives market”.
The letter states that the FIA supports the proposed $8 billion de minimis threshold for swap dealer registration purposes, as well as excepting swaps that are exchange-traded and/or cleared from de minimis calculations, without a notional backstop or haircut.
Although it required a heavy lift from the financial services industry, the Mifid II implementation deadline came and went with minimum disruption. However, as Galen Stops points out, the real change is still yet to come.
So here’s the good news for the FX industry: the January 3 Markets in Financial Instruments Directive (Mifid) II implementation deadline passed without any significant market disruption at the start of this month.
“January 3rd went relatively smoothly, our members generally reported a largely uneventful launch although the industry is continuing to work through a number of minor issues, which is what you would expect at this point in time,” says James Kemp, managing director, Global FX Division, Global Financial Markets Association (GFMA).
The Regulatory Reporting Hub of Deutsche Börse Group has launched a partnership with Risk Focus and its software subsidiary, RegTek.Solutions, to help with its OTC trade reporting.
Risk Focus will provide key system components for OTC trade reporting solution, including interpretation of instrument details of OTC derivatives submitted in FpML or XML format, as well as a rules engine for applying the regulatory validations, eligibility checks and deferrals.
“In the dynamic environment with frequent updates of regulatory details, the approach using a rules engine has already proven to be very useful. OTC trade reporting is one of the backbones of Mifid II, which is going to be effective as of January 2018.
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.