The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 7, 2011. In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.
Tag Archives: CFTC
The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 1, 2011. In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.
Jim Falvey has been an attorney in the exchange and FCM space for over 15 years. He has served as general counsel of Eurex US and IntercontinentalExchange, as assistant general counsel for CME Group and, most recently, as general counsel and corporate secretary of R.J. O’Brien & Associates. He also sits on the advisory board of CMDirect, a web-based commodity trading platform. John Lothian News editor-at-large Doug Ashburn spoke with Falvey about the MF Global bankruptcy, the Volcker Rule, protection of segregated funds, conflicts of interest, and other compliance issues related to the Dodd-Frank Act.
Guest Commentary By Jeff Malec, CEO – Attain Capital Management: To say the MF Global situation is a mess may be the understatement of the century. What began as an excuse to extol the segregated account’s safeguards against an FCM stock slide as MF Global shares lost 70% of their value in a week rapidly morphed into a full-fledged industry disaster as bankruptcy papers were filed and executives acknowledged a shortfall in those previously sacrosanct accounts. This admission, in conjunction with the bankruptcy, has caused over $5 Billion of customer funds held by MF Global to be frozen, unable to…
On November 16, 2011, the CFTC released the following statement from Commissioner Scott O’Malia: Last Thursday, the Commodity Futures Trading Commission (the “Commission”) confirmed that our Division of Enforcement is investigating MF Global, Inc. (“MF Global”) for possible violations of the Commodity Exchange Act (“CEA”) and/or Commission regulations. I fully support the Commission’s efforts to conduct a […]
See part 2 of the interview here. Larry Tabb is the founder and CEO of TABB Group, an advisory and research firm focusing on issues surrounding financial markets. His research and publication topics include trading and trade processing systems, market structure, regulatory issues, and technology trends. He is a contributing editor for Wall Street & Technology and Advanced Trading magazines, and is a frequent speaker at major business and industry conferences. John Lothian News Editor-at-Large Doug Ashburn spoke with Tabb about the future of OTC derivatives, capital and margin requirements.
The CME Group is getting bashed in the hallways, elevators and reportedly on the trading floors of the exchange over the way the MF Global bankruptcy played out. While some of this sometimes caustic criticism is justified, much of it is not. Yesterday the CME put out a customer letter to bring those impacted by the bankruptcy up to date. It is also aimed to explain how the system works and that the guarantee fund is meant to protect the integrity of the clearinghouse. The CME points out that on “October 31, when the trustee was appointed, MF Global was over-collateralized at CME Clearing.”…
Lauren Teigland-Hunt is managing director of Teigland-Hunt LLP, a law firm based in New York which focuses on U.S. commodities law and regulation. She advises financial institutions and buy side firms on regulatory issues related to derivative transactions and acts as counsel to several ISDA drafting committees. John Lothian News Editor-in-Chief Jim Kharouf spoke with Teigland-Hunt about documentation standards for cleared swap transactions (Section 731 of the Dodd-Frank Act), the FCM “agency model” imposed by sections 723 and 724 of the Dodd-Frank Act, and the first iteration of a standard execution agreement for cleared swaps, released by FIA and ISDA in June 2011.
Commissioner Bart Chilton says, in defense of position limits that: While I’d have an even tougher rule in many respects if I were the only author, this is nonetheless a very strong, needed and imperative rule to ensure more efficient and effective markets devoid of fraud, abuse and importantly, manipulation. This rule balances the needs of consumers and market participants alike. Dear Mr. Chilton: While you think that the position limits rule will ensure more efficient and effective markets “devoid of fraud, abuse and importantly, manipulation,” you are DEAD WRONG. We have long had laws outlawing murder (see the Ten…