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Tag Archives: Commodity Futures Trading Commission

CFTC’s Massad Recaps 2016 Commentary,Exchanges, OTC & Clearing,Feature,Interview,Mwiki,ReformWiki,Regulation & Enforcement,Video

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…

Gary DeWaal, Katten Muchin Rosenman – Regulation, Compliance and the Grandma Test Feature,MarketsWiki Education,MWEd,Mwiki,ReformWiki,Regulation

“Don’t let the perfect be the enemy of the good, and remember to apply ‘the grandma test.’” When you are faced with a difficult decision, picture this: you’re sitting at Thanksgiving dinner, the family is gathered around the table, and grandma comes in holding a newspaper with your picture on it. If she is happy to read about your decision, it was probably a good decision. If not, it was probably the wrong decision. Gary DeWaal knows regulation. He knows that good financial market regulation serves the public interest, and is neither overly prescriptive nor overly ambiguous. Good financial regulation…

Cattle Call: CME Group’s David Lehman Explains Changes to Cattle Contract Specs Interview,Video

Futures markets exist primarily as a risk management tool for participants. As such, a futures contract is most effective if and when it reflects the fundamentals in the underlying cash market. On August 5, 2016, CME Group announced several changes to its live cattle futures contracts to do just that. John Lothian News spoke with Dave Lehman, managing director of commodity research and product development at CME Group, about the changes which, pending CFTC approval, will go into effect later in August 2016.  “We are going to be applying a seasonal discount at Worthing, SD, one of our delivery points, of  $1.50…

Data Dive: CFTC’s O’Malia says swaps analytics need work Blog,Interview,Regulation,Tech / HFT,Video

The CFTC is mandated to help police the futures arena and its much bigger relative, the swaps market. Collecting and monitoring data on the swaps market has been a vexing problem for the agency, but CFTC Commissioner Scott O’Malia said it will solve it. “We have four different trade repositories, all of them accepting different data,” he said. “All of them have a different data architecture. So that means aggregating it is much difficult.” O’Malia, who spoke to JLN’s editor-in-chief Jim Kharouf, said there other complications as well, such as the type of data that is being collected, not to…

Sanjeev Joshipura of the Commodity Markets Council on Dodd-Frank in 2013 Interview,Regulation,Video

Sanjeev Joshipura

Sanjeev Joshipura, president of Commodity Markets Council, talks about how Dodd-Frank rules will impact his membership base. Joshipura talks with JLN editor-in-chief Jim Kharouf about the future of the controversial position limit rule, which was vacated by a US District Court on September 28, 2012. A new position limit rule is expected from the Commodity Futures Trading Commission (CFTC), which will include a cost-benefit analysis. CMC is also focused on the CFTC’s reauthorization this year and the continuation of EMIR regulations. Joshipura also talks about US and EU regulatory harmonization and the challenges facing that goal.

John Lothian Newsletter: BATS Sweetens Terms for Individuals Trading Stocks; CME rival says regulator’s swap rule change disruptive; Exchanges protest over margin rules John Lothian Newsletter,Newsletter

BATS Global Markets gets regulatory approval to offer pricing incentives to individuals who trade stocks. The DTCC, locked in a battle with CME Group and the CFTC over swap data reporting, takes issue with this week’s CFTC decision to pull back under pressure from CME Group. Around the world, global reform has exchanges under pressure, and claims are made that increased regulation will lead to increased costs, threatening income during a time when trading volume is already significantly lower.

John Lothian Newsletter: Foreign regulators warn on derivatives reform; Exchanges, Trading Firms Face Continuation of Dodd-Frank With Obama Win; The runners and riders to replace Geithner John Lothian Newsletter,Newsletter

Regulators outside the US met face to face with CFTC commissioners in an attempt to explain the consequences of the CFTC attempting to dictate regulatory policy to other countries. In the US election’s aftermath, exchanges and other financial companies see fading chances of a Congressional regulatory turnaround on Dodd-Frank. And as the current administration’s first half comes to a close, names go up on the whiteboard for candidates to fill the position of US Treasury Secretary to succeed Tim Geithner.