United States

Topic: Dodd-Frank

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Metlife SIFI appeal in abeyance; documents under seal to be reviewed for release

On August 2, 2017, the U.S. Court of Appeals for the D.C. Circuit ordered another stay in the ongoing case between the Financial Stability Oversight Council (FSOC) and MetLife over whether MetLife should be designated as systemically important and subject to additional regulation by the Federal Reserve Board. As noted in previous blog posts, on … Continue Reading

CFTC registers LedgerX to trade, clear Bitcoin derivatives

The Commodity Futures Trading Commission (CFTC) recently approved two applications from LedgerX – a platform for trading and clearing Bitcoin options – to become registered as a swap execution facility (SEF) and derivatives clearing organization (DCO). These approvals make LedgerX the first DCO and the second SEF approved to facilitate digital currency-related derivatives activity (another … Continue Reading

US regulators reviewing Volcker Rule applicability to certain non-US funds

On July 21, 2017, the Federal Reserve Board, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation (the “US Banking Agencies”), along with the Securities and Exchange Commission and the Commodity Futures Trading Commission, issued a joint press release indicating that they were coordinating their review of the applicability of the Volcker … Continue Reading

Incriminating IMs lead to Singapore precious metals trader settling, pleading guilty to charges of spoofing, manipulation and wire fraud

A former futures trader recently agreed to a settlement order from the U.S. Commodity Futures Trading Commission (“CFTC”) imposing a permanent trading ban for spoofing and manipulation, and pled guilty to criminal charges of manipulation and wire fraud, for trading done in the precious metals market. David Liew was a trader on a major financial … Continue Reading

Court stays FSOC’s Metlife SIFI appeal

As noted in previous blog posts, on March 30, 2016, MetLife prevailed against the Financial Stability Oversight Council (FSOC) when a US District Court Judge for the District of Columbia issued an order overturning the FSOC’s designation of MetLife as a Systemically Important Financial Institution (SIFI). The designation of  SIFIs is one of the many … Continue Reading

CFTC amends regulations to prohibit restrictions on employee communication concerning potential Commodity Exchange Act violations

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) amended Part 165 of its regulations, which govern whistleblower incentives and protections. In addition to strengthening existing anti-retaliation protections for whistleblowers, the amendments also prohibit employers from restricting employees from reporting potential violations of the Commodity Exchange Act directly to the CFTC. This prohibition extends … Continue Reading

More Presidential action on potential deregulation

On April 21, 2017, the White House issued an Executive Order and two Presidential Memoranda to the U.S. Secretary of the Treasury as part of the Trump Administration’s continuing efforts on deregulation: The Presidential Executive Order on Identifying and Reducing Tax Regulatory Burdens orders the Secretary of the Treasury, in consultation with the Office of … Continue Reading

FRB issues first Volcker Rule enforcement order and civil penalty

On April 20, 2017, the Federal Reserve Board issued its first Volcker Rule enforcement order and assessed a $19.71 million civil penalty. It was issued against a non-U.S. bank with banking offices and subsidiaries in the United States. The Federal Reserve Board determined that the bank did not have a compliance program “reasonably designed to … Continue Reading

EU v US intermediate financial holding company regimes

The latest Banking Reform updater features an analysis of EU v US intermediate financial holding company regimes. The update introduces the EU IHC proposals and compares the EU and US regimes: Why are the EU IHC rules being proposed? Overview – effects of the EU IHC regime and comparison with the US regime Analysis – EU … Continue Reading

Administration deregulatory agenda is focus of next Norton Rose Fulbright New York briefing

Norton Rose Fulbright New York office’s next financial services briefing is a breakfast seminar set for Thursday, March 2, 2017, at 8:30 AM EST. Each month, Norton Rose Fulbright’s senior practitioners will provide interested in-house counsel and professionals with an insightful discussion on current regulatory trends within the financial services sector. March’s briefing will start … Continue Reading

CFTC staff issues relief to swap dealers from CFTC’s regulations on margin requirements for uncleared swaps

The Commodity Futures Trading Commission’s (“CFTC” or “Commission”) Division of Swap Dealer and Intermediary Oversight (“DSIO”) recently issued relief to CFTC-registered swap dealers (“SDs”) from compliance with certain CFTC uncleared swaps margin requirements under two No-Action letters (“NALs”). The relief under these two NALs extends only to those SDs that are obliged to comply with … Continue Reading

Trump Administration emphasis on deregulation continues

Last week the Trump Administration continued its focus on deregulation by issuing two Executive Orders, one requiring executive agencies to cut two regulations for every new one they promulgate, and a second one setting forth principles for executive agencies to follow in promulgating financial regulations. The first Order, entitled “Presidential Executive Order on Reducing Regulation … Continue Reading

Federal Reserve Board announces conformance extension request procedures for Volcker Rule illiquid covered funds

On December 12, 2016, the Federal Reserve Board announced the issuance of a Policy Statement and Supervisory Letter with instructions on how banking entities can request extensions of time to conform their legacy illiquid covered funds to the requirements of the Volcker Rule. Requests will have to be made by mid-January 2017. Background The Volcker … Continue Reading

CFTC pushes position limits to new Administration, but finalizes aggregation rules

Today, in a move on its long-pending proposals, the CFTC: (1) re-proposed its new speculative position limits rules (the “Re-Proposal”), which would impose federal limits on 25 physical commodity futures contracts and their “economically equivalent” futures, options, and swaps; and (2) separately issued final rules relating to position aggregation requirements (the “Final Aggregation Rules”). We … Continue Reading

2016 Election is focus of next Norton Rose Fulbright New York briefing

Following up on our inaugural session on November 2, the Norton Rose Fulbright New York office’s second 40-minute financial services briefing is set for this Thursday, December 1. Each month, Norton Rose Fulbright’s senior practitioners will provide interested in-house counsel and professionals with an insightful discussion on current regulatory trends within the financial services sector. … Continue Reading

CFTC postpones drop of swap dealer registration de minimis threshold

On October 13, 2016, the Commodity Futures Trading Commission (“CFTC’”) unanimously issued an order establishing December 31, 2018 as the swap dealer de minimis threshold phase-in termination date (the “Order”). The Order is effective October 13, 2016. Summary of the Order Pursuant to CFTC Regulation 1.3(ggg), a person shall not be deemed to be a swap … Continue Reading

CFTC proposes regulations superseding in part its 2013 cross-border guidance

On October 11, the Commodity Futures Trading Commission (“CFTC’”) issued proposed rules and interpretations (the “Proposed Rule”) addressing the cross-border application of certain swap provisions of the Commodity Exchange Act. Generally speaking, the Proposed Rule aims to: (1) codify certain aspects of the CFTC’s earlier guidance on the cross-border aspects of its swaps regulations (the … Continue Reading

CFTC Chairman Massad supports one-year extension of current swap dealer de minimis threshold

CFTC Chairman Massad today announced that he will recommend a one-year extension of the date on which the swap dealer de minimis threshold will drop from $8 billion to $3 billion.  Chairman Massad will recommend the Commission take this action through Commission order.  If adopted, the Commission order would permit market participants to calculate their … Continue Reading

SEC finalizes data rule for security-based swap data repositories

The United States Securities and Exchange Commission (SEC) recently finalized a regulation pursuant to Title VII of the Dodd-Frank Act regarding the requirement for security-based swap data repositories (SBSDRs) to make security-based swap data available to other domestic and foreign regulators. Pursuant to the final regulation, SBSDRs must make available security-based swap data, including individual … Continue Reading

CFTC Chairman Massad announces priorities for remainder of 2016

On September 8, 2016, the CFTC held an open meeting where the Commissioners: (i) unanimously approved two final rules regarding system safeguards and testing requirements for derivatives trading platforms, clearinghouses, and data repositories, and (ii) approved, over Commissioner Bowen’s dissent, a “comparability determination” for purposes of substituted compliance with Japan’s regulations regarding margin requirements for … Continue Reading

CFTC staff publishes final report on de minimis threshold for swap dealer registration requirement

CFTC Staff has published a Final Report on the Swap Dealer De Minimis Exception (Final Report) addressing 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.  The Final Report provides updated data analysis, and summarizes public comments … Continue Reading

Asset management groups react to proposed incentive-based compensation rule

On May 16, 2016, six federal regulatory agencies – the Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve Board, National Credit Union Administration, Office of the Comptroller of the Currency and the Securities and Exchange Commission – announced that they were requesting comment on a proposed rule under Section 956 of the Dodd-Frank … Continue Reading

Federal Reserve again extends Volcker Rule conformance period for legacy funds

On July 7, 2016, the Federal Reserve Board issued an order allowing banking entities an additional year, from July 21, 2016 to July 21, 2017, to conform their relationships with certain legacy covered funds subject to the Volcker Rule. The order is similar to the second extension granted in December 2014 that expires this month. … Continue Reading

FSOC lifts SIFI designation on GE Capital

On June 29, 2016, the Financial Stability Oversight Council (FSOC) announced that it had voted to lift its designation of GE Capital as a systemically important financial institution (SIFI). The Dodd Frank financial reform act established the FSOC, which is chaired by the US Treasury Secretary and includes the major US financial regulators, after the … Continue Reading