Weekly Roundup | US Regulation | 6 February 2014
CFTC Cross-Border Guidance 'Has the Feel of a Rule', Lawyers Agree
The US Commodity Futures Trading Commission will lose a lawsuit challenging its cross-border guidance, lawyers are predicting – even though one commission insider insists it has done nothing wrong. It's a prospect that should cheer the industry, but could usher in months of chaos. Risk: CFTC Cross-Border Guidance 'Has the Feel of a Rule', Lawyers Agree.
Vague Volcker Causes Confusion
From its treatment of portfolio hedges to correlation tests and inventory limits, the Volcker rule lacks detail on key elements, lawyers say. That is an attempt to give the industry – and supervisors – some flexibility, but it could make compliance a game of chance. Risk: Vague Volcker Causes Confusion.
Volcker Rule Hedge Accounting
On December 10th, 2013, five US federal agencies adopted a final rule to implement the Volcker Rule. The effective date of the Volcker Rule is April 1st, 2014. However, the agencies have extended the compliance deadline until July 21st, 2015. The OTC Space: Volcker Rule Hedge Accounting.
10 Reasons Why CFTC-Imposed Position Limits Will Affect Swaps End Users
Many swap end users assumed they would be exempt from CFTC position limits because most of their transactions would qualify as bona fide hedges. Based on the most recent CFTC proposals, however, they were wrong. Tabb Forum: 10 Reasons Why CFTC-Imposed Position Limits Will Affect Swaps End Users.
CFTC Funding Increased … Now Just Wholly Inadequate
CFTC Acting Chairman Mark Wetjen, pronounced himself "pleased" at the $215m. increase allocated to the CFTC in the omnibus appropriations bill: This increase means the CFTC will be better equipped to fulfil our mission – ensuring the derivatives markets work for market participants and the public. This funding level is a step in the right direction, and we will continue working with Congress to secure resources that match our new responsibilities to provide oversight for the vast derivatives markets”. Regulatory Reform: CFTC Funding Increased … Now Just Wholly Inadequate.
CFTC Looks to Address Swap Report Data Issues Affecting Swap Transparency
According to the Wall Street Journal, the Commodity Futures Trading Commission is beginning to make changes to fix swap report data issues that have made it difficult to facilitate market transparency.
A Kinder Gentler CFTC?
In a speech whose title begins, as if actually imparting news, “We can do better..” the Republican CFTC Commissioner Scott O’Malia focussed his critical attention on three main areas: data problems and progress, SEF’s and protecting end-users. Regulatory Reform: A Kinder Gentler CFTC?
Footnote 513 Lawsuit- Can the CFTC Win by Losing?
A short update on developments in the Footnote 513 Guidance case filed by ISDA, SIFMA and the IIB (the “Plaintiffs”) against the CFTC in early December 2013. Regulatory Reform: Footnote 513 Lawsuit- Can the CFTC Win by Losing?
CFTC Weekly Swaps Report: Over $202 Trillion in Interest Rate Swaps Volume Cleared Through January 17
As part of its efforts to encourage transparency in the swaps market, the CFTC developed a Weekly Swaps Report, which provides a detailed view of trading activity in the swaps market. DerivAlert: CFTC Weekly Swaps Report: Over $202 Trillion in Interest Rate Swaps Volume Cleared Through January 17.
Weekly CFTC OTC Market Report
If you weren't aware, the CFTC now publish aggregate data based on the trade data submissions on OTC products to the DTCC, ICE and CME SDRs on a weekly basis. The introduction page explains the approach and their Data Dictionary. The OTC Space: Weekly CFTC OTC Market Report.