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Category Archives: Regulation

Regulation news updates from John Lothian News.

POV: Are Publicly Traded Exchanges Sticking It To You? Standard

There is a recurring criticism of publicly traded exchanges – that they are not serving the needs of their customers, all to satisfy shareholders. Such was the essence of the argument by James Andrus, an investment manager from CalPERS, the California pension and investment giant. On a panel at the World Federation of Exchanges annual meeting last week in Athens, he said stock exchanges are bending to the desires of listed companies on their exchanges on proxy voting rule changes and other policy changes at the expense of investor firms like his. And the motivation, he said, was that exchanges…

ErisX Enters the Crypto World With New Spot and Futures Platform Standard

It looks like there is a growing market for regulated exchange trading of cryptocurrencies. ErisX, the U.S. futures exchange best known for offering listed interest rate swap futures, just announced plans to launch a derivatives exchange (DCM) and clearing organization (DCO) that will offer digital asset futures and spot contracts on one platform. The exchange plans to offer contracts on bitcoin, bitcoin cash, ethereum and litecoin. This is going a step beyond the CME and the Cboe, which began offering cryptocurrency futures in December 2017. Eris needs a DCO license to clear its crypto contracts; that application is pending with…

Brexit Has Industry Participants Prepping For “Worst Case Scenario” Standard

Industry participants are preparing for a worst case scenario with the UK Brexit coming next March. Frustration with the process and lack of political leadership was palpable at the World Federation of Exchanges Annual Meeting in Athens. On a Brexit panel Thursday, industry executives said the damage to UK and EU markets could be severe. “Brexit is making the European market smaller and it will take years to rebuild,” said Jarkko Syyrilä, head of public affairs at Nordea Wealth Management. “Politics is completely destructive. We are just six months away and we have no clarity on what is going to…

Born Tech’s Haworth on MiFID II’s Real-Time Problems Standard

MiFID II may have been implemented in January, but that does not mean that everyone in markets was adequately prepared. Certain aspects of the regulation, such as unbundling, were widely understood, but MiFID’s RTS 6 obligation might have some participants still adjusting. RTS 6 requires that firms engaging in direct electronic access (DEA) or algorithmic trading monitor their activities and markets in real-time for “disorderly trading.” In this video, Born Technology’s CEO Derek Haworth talks about some of these challenges stemming from MiFID II.   Produced by Mike Forrester

CFTC Division of Enforcement Trends Standard

This piece was co-authored by Elizabeth Lan Davis, a former chief trial attorney at the Commodity Futures Trading Commission (CFTC), who joined Murphy & McGonigle a few weeks ago, and another lawyer at the Firm, Brian Walsh. On November 22, 2017, the Division of Enforcement (“Division”) of the Commodity Futures Trading Commission (“CFTC”) released its annual enforcement results, announcing that it had filed 49 enforcement actions for Fiscal Year 2017.  Despite the unexpected decrease to the CFTC’s budget, the agency’s enforcement program is on pace to markedly improve upon the number of filings made during Fiscal Year 2017. Since announcing…

The Dawn of Crypto Regulation Standard

cryptocurrency dollar

On April 11, 2018, regulators, academics and market users gathered in Washington DC to discuss the issues, challenges and future of regulation for the digital asset space. Titled “Smart Financial Regulation Roundtable: Implications of Cryptocurrencies,” the program featured three separate sessions: The first session: The State of Play in Cryptocurrencies – What are cryptocurrencies and how are they being used and regulated? The second session: The Regulatory Response to Cryptocurrencies – What should regulators and policymakers do to help cryptocurrencies achieve their potential while minimizing risk? The final session: A Fireside Chat with CFTC Commissioner Rostin Behnam and Brian Knight,…

As SEC Subpoenas to Tech Companies in Digital Tokens Market Increase, What Issuers Need to Know Standard

  The Securities and Exchange Commission (“SEC”) reportedly has revved up its focus and issued a significant number of subpoenas targeting technology companies in the digital token space, following on earlier pronouncements from the agency that it would expand its focus on ICOs and cryptocurrencies. The subpoena process is one of the primary weapons in the SEC’s enforcement arsenal, and ICO issuers will need to understand what they can expect over the next few weeks.  What is a subpoena? A subpoena is a formal request from the SEC staff for documents or testimony, which can be enforced with a court…

Don’t Get the Munchees! A Lesson from the SEC Standard

The Securities & Exchange Commission (“SEC” or the “Commission”) has made good on its promise to pursue companies that engage in what it views as unregulated offerings of securities by way of initial coin offerings or “ICOs.” Specifically, the Commission recently pursued a company called “Munchee” that created an iPhone application for people to review restaurant meals. To fund the creation of its app, Munchee began an ICO seeking to raise $15 million and, in return, issue its token known as a “MUN.”  The company issued a white paper in connection with its ICO. In that document, Munchee indicated that…