European Regulation

Europe Learns From CFTC on Trade Reporting

A powerful body overseeing one of the world’s main derivatives markets has ruled that an important piece of legislation should be mandatory in months, in spite of industry warnings about difficulties in implementation. FT: Europe Learns From CFTC on Trade Reporting.

Esma Fires Starting Gun on European Swaps Reporting

The European Securities and Markets Authority has approved the first four trade repositories that will be responsible for collecting data on derivatives transactions, starting the countdown to trade reporting under new regulations. Financial News: Esma Fires Starting Gun on European Swaps Reporting.

EMIR Trade Reporting: Starter's Orders

With the European Securities and Markets Authority (ESMA) having finally authorised the first trade repositories under the European Market Infrastructure Regulation (EMIR), the race to implement trade reporting is now well and truly on! FinExtra: EMIR Trade Reporting: Starter's Orders.

EMIR UTIs: What is Required and a Summary of the Proposed Solutions

The UTI is essential for successful EMIR reporting – get it wrong and your reports won’t match. RegTechFS: EMIR UTIs: What is Required and a Summary of the Proposed Solutions.

New ISDA Documents on UTI Generation and Communication Best Practice

ISDA have released a summary document and presentation/webinar on their recently released best practice document on how to generate and communicate Unique Transaction identifiers. CTRM Center: New ISDA Documents on UTI Generation and Communication Best Practice.

The Impact of MiFID II on Your OTC Derivatives Trading Business

Despite the fact that we are waiting for the December plenary session, and that the details of MiFID II are not yet finalised, we can already observe some key changes in the legislation. RegTechFS: The Impact of MiFID II on Your OTC Derivatives Trading Business.

EU Set for Battle Over Rules for Securities Markets

A battle over the rules governing Europe's stock, bond, commodities and derivatives markets rachets up next week when the EU's financial services chief pushes for stricter controls which some member states say risk driving business away. Reuters: EU Set for Battle Over Rules for Securities Markets.

Disagreement Over Waivers Risks Pushing MiFID Decision to 2014

A lack of consensus over dark pools and pre-trade transparency waivers risks pushing a conclusion to the trialogue on MiFID II into the first quarter of next year, according to those familiar with the situation. The Trade News: Disagreement Over Waivers Risks Pushing MiFID Decision to 2014.

Senior German Lawmaker Says Financial Transaction Tax Unlikely

An influential regional leader in Chancellor Angela Merkel's conservative party said he does not believe a financial transaction tax (FTT) will be enacted in Germanyeven though coalition negotiators have agreed to push for the tax. Reuters: Senior German Lawmaker Says Financial Transaction Tax Unlikely.

Euro Regulations Face Delays as Election Looms

European regulations on financial benchmarks, money market funds and long-term investment funds are facing extensive delays because they may not get passed before European elections due next May. Financial News: Euro Regulations Face Delays as Election Looms.

IMA: EU Regulations are Heading in Different Directions

Two pieces of European legislation relating to sales practices – specifically “inducements” for financial advisers (or trail commissions) and their disclosure – are heading in different directions. MoneyMarketing: IMA: EU Regulations are Heading in Different Directions.

Collateral Conundrum Still Poses Multiple Challenges

In the third part of our series looking at the implementation of the European OTC clearing mandate, David Wigan updates on the challenges posed by higher collateral requirements. Futures & Options World: Collateral Conundrum Still Poses Multiple Challenges.

US Regulation 

White House Announces Nominee for CFTC Chairman

According to the Financial Times, the White House plans to nominate Timothy Massad for chairman of the Commodity Futures Trading Commission (CFTC). Massad, a US treasury official, will be taking the place of current CFTC chairman Gary Gensler, who will be stepping down towards the end of the year. CFTC Law: White House Announces Nominee for CFTC Chairman.

CFTC Chairman Nominee Timothy Massad Met With Skepticism by Senate

According to Bloomberg, President Obama’s nominee for the next chairman to the Commodity Futures Trading Commission is being met with skepticism by some members of the Senate. CFTC Law: CFTC Chairman Nominee Timothy Massad Met With Skepticism by Senate.

CFTC Issues Final Rules on Collateral Protection for Uncleared Swaps

On 6 November 2013, the CFTC published the final rules on the protection of collateral of counterparties to uncleared swaps (17 CFR Parts 23 and 190) on their webpage. Regulatory Reform blog: CFTC Issues Final Rules on Collateral Protection for Uncleared Swaps.

CFTC Clarifies Applicability of Transaction-Level Requirements in Certain Cross-Border Situations

CFTC press release: CFTC Staff Issues Advisory on the Applicability of Transaction-Level Requirements in Certain Cross-Border Situations.

Wall Street Bid on Cross-Border Swaps Quashed by U.S. Regulator

The top U.S. derivatives regulator moved to close off large banks’ ability to avoid new regulation by arranging trades in America and then booking the deals in overseas affiliates. Bloomberg Business Week: Wall Street Bid on Cross-Border Swaps Quashed by U.S. Regulator.

CFTC’s Divisions of Clearing and Risk, Market Oversight and Swap Dealer and Intermediary Oversight Issue Guidance on the Application of Certain Commission Regulations to Swap Execution Facilities

The Commodity Futures Trading Commission’s Divisions of Clearing and Risk, Market Oversight and Swap Dealer and Intermediary Oversight issued guidance (Guidance) today to swap execution facilities (SEFs) and applicants for registration as a SEF concerning certain Commission regulations. CFTC Press Release: CFTC’s Divisions of Clearing and Risk, Market Oversight and Swap Dealer and Intermediary Oversight Issue Guidance on the Application of Certain Commission Regulations to Swap Execution Facilities.

CFTC’s Division of Market Oversight Issues New Guidance on the Application of Certain Commission Regulations to Swap Execution Facilities

The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) issued new guidance today to swap execution facilities (SEFs) and applicants for registration as a SEF concerning certain Commission regulations. CFTC Press Release: CFTC’s Division of Market Oversight Issues New Guidance on the Application of Certain Commission Regulations to Swap Execution Facilities.

CFTC Issues Final Rules for Derivatives Clearing Organizations to Align with International Standards

The Commodity Futures Trading Commission (CFTC) today finalized rules to establish additional standards for systemically important derivatives clearing organizations (SIDCOs). CFTC Press Release: CFTC Issues Final Rules for Derivatives Clearing Organizations to Align with International Standards.

Other Regulatory News

G20 Regulatory Reform: A Helicopter View

With the regulation page count continuing to increase exponentially, implementation becomes more complicated as rules overlap and deadlines slide. RegTechFS: G20 Regulatory Reform: A Helicopter View.

KPMG Treads New Ground With Fund

KPMG, the giant professional services company, will on Monday launch its first investment fund as it branches out into other areas in a sign of the big changes afoot in the financial services industry. FT: KPMG Treads New Ground With Fund.

Regulatory Skills Shortage is a Problem for Everyone

Financial services regulation invariably starts with the best of intentions. Financial News: Regulatory Skills Shortage is a Problem for Everyone.

Regulators Ask for ISDA to Delay Derivatives Liquidations; Is Repo Next?

A November 6th article in the FT “Regulators urge rewrite for derivatives contracts” by Sam Fleming caught our eye. The article is behind the pay wall, but we urge you to read it. We wonder if it is a solution that is pointed in the wrong direction. Securities Finance Monitor: Regulators Ask for ISDA to Delay Derivatives Liquidations; Is Repo Next?

OSC, AMF and MSC Issue Final Derivatives Rules

The Ontario Securities Commission on Thursday published the first set of its new harmonized derivative rules. Financial Post: OSC, AMF and MSC Issue Final Derivatives Rules.