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Category Archives: Regulation & Enforcement

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CFTC Commissioner Bowen Outlines Disruptive Derivatives Developments at Brodsky Family Lecture Standard

The fate of financial regulations, and specifically the Dodd-Frank Act, under the Trump administration is one of the biggest questions facing the industry and investors.  CFTC Commissioner Sharon Bowen addressed that question in a speech at the Northwestern University Pritzker School of Law last night as part of the Brodsky Family JD-MBA Lecture Series. Bowen earned her law degree at Northwestern’s Law School and is a strong supporter of the school. In addition to her role at the CFTC, she was also acting head of the Securities Investor Protection Corporation, chartered by Congress to help protect U.S. investors from brokerage…

The Most Popular Stories of 2016 on JohnLothianNews.com Standard

As we end 2016 we should all stop in at Ceres in the Chicago Board of Trade Building for a stiff drink and to shake the hand of Billy Assimos. He was the focus of the most read story on www.johnlothiannews.com in 2016, according to Google Analytics. Sarah Rudolph penned the story, “Billy Assimos, the Face of Ceres” in June of this year. Assimos is the longtime manager of Ceres, a restaurant and bar in the CBOT Building, and a friend of many. I guess it pays to serve the stiffest drinks in Chicago. Coming in second place was Jim…

Next Man Up: Tom Sexton Takes The Reins At National Futures Association With An Eye On Technology and Swaps Regulation Standard

For the markets and market regulators, the industry is all about technology. Tom Sexton, who was named president and CEO of the National Futures Association (NFA) last week , said the organization is focused on upgrading its systems to keep up with the changing market landscape. Sexton, who has been at the NFA since 1991 and will take over for current CEO Dan Roth in March, spoke with John Lothian News about his new role and what’s next for the organization. “Some of our technology is old and some of our systems are 10-plus years or older,” Sexton said. Among…

A Basel netting issue: Pushing for less burdensome capital requirements in the options market Standard

The unintended consequences of financial regulation have been seeping into the markets since the first rule was made in the wake of the financial crisis. One prime example is the leverage ratio, which determines the required capital of general clearing members. The actual calculation of the capital requirement within the Basel III leverage ratio framework is a particular sticking point for the OCC. Right now, the Current Exposure Method (CEM) is used in the calculation, whereas the OCC and a wide swath of industry participants believe that the Standardised Approach for Counterparty Credit Risk (SA-CCR) would better encapsulate the nature…

The Black Swan – the new symbol of the United States of America Standard

  Yah baby, Yah! Dodd-Frank, gone. Clearing mandate, gone. Regulations, gone. Low interest rates, no problem. Volcker Rule, gone. Volatility, you bet. Bullish on the exchange sector, you bet. The American voters just unleashed the greatest gift on the world of trading we could have ever asked for. We will now have volatility at all times of the day and night. Binary contracts just became a big thing. Forget about market direction. You better learn to trade volatility. We just made the Black Swan the new symbol of the United State of America. Goodbye Eagle. You want some Twitter rants…

Impact: Navigating Regulation and What Comes Next, Part 3 Standard

At FIA Expo 2016, JLN spoke with a variety of participants in today’s markets about the ongoing effects of regulation and what those mean for the future of their businesses.   In Part 3 of our three-part series, Matt Rees, chief relationship officer at R.J. O’Brien; Justin Llewellyn-Jones, COO of Fidessa; Geoff Sharp, managing director and head of sales at Eris Exchange; David Widerhorn, CEO of Neurensic; and Alex Lamb, head of business development Americas and head of marketing with Technancial, spoke about the increasing complexity and cost of regulations, in particular for FCMs, and the opportunities to be had…

Impact: Navigating Regulation and What Comes Next, Part 1 Standard

At FIA Expo 2016, JLN spoke with a variety of participants in today’s markets about the ongoing effects of regulation and what those mean for the future of their businesses.   In Part 1 of our three-part series, Phupinder Gill, CEO of CME Group; Drew Shields, CTO of Trading Technologies; Dave Snowdon, co-founder, director and CTO of Metamako; and Hazem Dawani, president and CEO of OptionsCity, provide their thoughts on subjects ranging from issues with MiFID II clock synchronization to the shifting clearing landscape.  

CFTC’s Massad Recaps 2016 Standard

Chairman says Reg AT is next big item on the list to finish before yearend. The futures industry’s regulator had several initiatives in 2016 but the top items were tackling the issue of cybersecurity, margin and the upcoming finalization of automated trading rules. On cybersecurity, the CFTC adopted rules for the exchanges, clearing houses, trading platforms and trade repositories that require more testing of platforms and systems to make them more secure. “That’s probably the biggest single threat to financial stability in our markets today,” said Timothy Massad, chairman of the Commodity Futures Trading Commission, who spoke with John Lothian…

Run Gary Run Standard

It has been almost two years since Gary Gensler left the Commodity Futures Trading Commission as perhaps its most talked about, debated and in some circles, despised chairman. To some, his unrelenting drive to pound home rules established by the Dodd-Frank Act was considered a declaration of war against the derivatives industry. To his supporters, his determination was lauded, and he was considered one of the guys who was ready to stand up to Wall Street and LaSalle Street all in the name of Main Street. Now Gensler has grabbed attention this week at the FIA Expo in Chicago. On…