The CFTC has issued a supplemental proposed rulemaking (the “2016 Supplement”) that would give futures exchanges (“Exchanges”) greater authority over exemptions if the CFTC finalizes its long-pending proposed new speculative position limits that it published in December 2013 (the “Limits Proposal”). In an effort to be responsive to severe criticism of the Limits Proposal, particularly
CFTC proposes to clear way for private rights of action concerning exempted RTO/ISO transactions
On May 10, 2016, the U.S. Commodity Futures Trading Commission (“CFTC”) issued a notice of proposed amendment to its 2013 order exempting specified electric energy transactions in certain Regional Transmission Organizations (“RTOs”), Independent System Operators (“ISOs”) and the Electric Reliability Council of Texas (“ERCOT”) from regulation under certain provisions of the Commodity Exchange Act (“CEA”)
CFTC retires Form TO – and most other requirements for end-users regarding trade options
The CFTC recently issued Final Rules eliminating the requirement that commercial end-users of derivatives file an annual Form TO for reporting certain information about their use of commodity trade options. The agency confirmed that, in light of the Final Rules, the Form TO that was due by April 1, 2016, with respect to trade option
ICE Futures US adopts new position limit disaggregation rule for owned entities
ICE Futures US (“ICE”) adopted a new rule, effective March 18, 2016, that provides relief from position limit aggregation requirements applicable to “owned entities.” Specifically, the rule amendment permits certain affiliated entities to disaggregate their positions for purposes of compliance with ICE’s position limits.
Background
ICE imposes spot-month position limits on all its futures contracts,
CFTC and futures exchange enforcement actions: A year in review (2015)
Market participants must be mindful of the robust enforcement environment at the CFTC and U.S. futures exchanges. In 2015, the CFTC brought numerous enforcement actions and continued to impose aggressive civil monetary penalties on market participants, including energy and agricultural companies. Significantly, the CFTC also started to pivot from implementing to enforcing its regulations promulgated
CFTC proposes rules on automated trading
The CFTC has proposed a set of rules, referred to collectively as proposed Regulation AT, that would, for the first time, impose risk control and other requirements governing algorithmic trading systems (ATSs) in futures contracts, options, and swaps traded on designated contract markets (DCMs) such as CME, CBOT, NYMEX, and ICE Futures US. Regulation
CFTC staff publishes report on de minimis threshold for swap dealer registration requirement
CFTC staff has published for public comment a Preliminary Report regarding the level of swap dealing activity that is considered “de minimis” and therefore does not require an entity to register as a swap dealer with the CFTC. Comments must be filed on or before January 19, 2016.
The de minimis threshold
CFTC
CFTC Brings First Action Against a SEF – For Facilitating Non-Competitive Bitcoin Swaps
On September 24, 2015 the CFTC issued an Order settling an enforcement action against TeraExchange, a provisionally registered swap execution facility (SEF). According to the Order, TeraExchange failed to enforce its rules prohibiting wash trading and pre-arranged trading. In fact, the Order found, TeraExchange affirmatively arranged for two market participants to enter into the SEF’s
CFTC issues new position limits proposal to make it easier for majority-owned affiliates (greater than 50% to 100% ownership) to disaggregate futures and swaps positions
On September 22, 2015, the CFTC issued a “supplemental” proposed rulemaking (the “2015 Proposal”) to revise its long-pending proposal on aggregation for position limit purposes published in November 2013 (the “2013 Proposal”). The 2015 Proposal, if finalized, would provide companies with over 50% ownership or equity interest in affiliated entities with an easier mechanism to
CFTC delays key cross-border swap Advisory for 5th time
Almost two years ago, in November 2013, CFTC staff issued a cryptic 2-page Advisory stating that swaps between a non-US swap dealer and a non-US person, even if they are booked outside the United States, are subject to certain “Transaction-Level Requirements” adopted by the CFTC in implementing the Dodd-Frank derivatives reforms, if the non-US swap