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Category Archives: Regulation & Enforcement

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How do we make American markets great again? Keep it simple, stupid. Standard

CFTC Commissioner Christopher Giancarlo detailed his plan for the agency after being nominated by President Trump as chairman of the Commodity Futures Trading Commission on Wednesday at FIA Boca. Gene Simmons would be proud — the new initiative is called Project KISS (Keep It Simple, Stupid). KISS has three key goals: fostering U.S. economic growth, enhancing markets and “rightsizing” the agency’s footprint. All of these tie into Giancarlo’s overarching point about the agency — it has lost sight of its regulatory goals.  On the topic of fostering U.S. economic growth, Giancarlo took a big picture look at the tumult of…

Walt Lukken: Three Ideas for Trump and a New Optimism for FIA Boca Standard

After almost seven years of Dodd-Frank reforms, the industry has adjusted, reacted and adapted to the new regulatory structure. Now with the new Trump administration in Washington, the FIA sees an opportunity to take stock of what’s been done and what might be the best plan going forward. There’s no doubt the industry has struggled to comply with the spate of new rules from the CFTC, not to mention from other federal agencies. Walt Lukken, president and CEO of the FIA, has advocated for looking at three main areas of regulation that maintain regulatory reforms but allow for more sensible…

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.