The CFTC last week formally withdrew its controversial Proposed Regulation Automated Trading (Proposed Reg AT) and—consistent with Chairman Tarbert’s principles-based approach to regulation—proposed in its place new electronic trading risk principles (the Risk Principles) for designated contract markets (DCMs). The CFTC’s new approach is likely to be welcomed by
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Annette L. Nazareth
Ms. Nazareth is a partner and head of Davis Polk's Washington DC office and leads the trading and markets practice within the firm’s Financial Institutions Group. [Full Bio]
SEC Issues Order Requiring Changes to NMS Plan Governance
By Annette L. Nazareth, Jai R. Massari, Gabriel D. Rosenberg, Zachary J. Zweihorn, Mark A. Sater & Tyler X. Senackerib on
Posted in Broker-Dealer, SEC
The Securities and Exchange Commission acted on the first of its proposals to substantially revamp the regulations concerning equity market data by issuing an order directing the national securities exchanges and the Financial Industry Regulatory Authority to propose a new National Market System equity market data plan. The new plan,…
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SEC Proposes Changes to Market Data Infrastructure
The SEC recently proposed amendments to the current market data infrastructure to expand the content required to be published on the consolidated tape and decentralize the collection, consolidation, and dissemination of market data through the introduction of proposed competing consolidators and self-aggregators.
Please see our client memorandum for more details.…
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CFTC Adopts Final Interpretation on the Actual Delivery Exception for Leveraged Retail Virtual Currency Transactions
By Jai R. Massari, Annette L. Nazareth, Gabriel D. Rosenberg, Zachary J. Zweihorn & Tyler X. Senackerib on
Posted in CFTC, Guidance & FAQs
The CFTC unanimously approved final interpretive guidance describing what constitutes “actual delivery” of a virtual currency for purposes of the actual delivery exception from the provisions of the Commodity Exchange Act that prohibit any leveraged, margined, or financed transaction in a commodity with a retail customer, unless the transaction is…
Continue Reading CFTC Adopts Final Interpretation on the Actual Delivery Exception for Leveraged Retail Virtual Currency Transactions
CFTC Issues COVID-19 Related Relief for Futures and Swap Market Participants
By Jai R. Massari, Annette L. Nazareth, Gabriel D. Rosenberg, Zachary J. Zweihorn & Tyler X. Senackerib on
Posted in CFTC, Swap Regulation
The CFTC today joined other U.S. financial regulators in providing COVID-19 related relief from certain regulatory requirements. This relief is designed to help CFTC-registered swap dealers, futures commission merchants (FCMs), introducing brokers, swap execution facilities (SEFs), designated contract markets (DCMs) and other market participants…
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Visual Memo: CFTC Proposes Amendments to Cross-Border Rules
On December 18, 2019, the CFTC proposed rules that would modify and codify the cross-border application of certain of its Title VII swap rules to both U.S. and non-U.S. registered swap dealers and major swap participants. Among other changes, these proposed rules would revise (1) which cross-border swaps must be…
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Encouraging Innovation: Brokered Deposits—What Fintechs Need to Know to Partner with Banks under the FDIC’s Proposed Regulations
In a step forward for the digital transformation of banking and partnerships between banks and FinTechs, the FDIC released proposed changes to its brokered deposit regulations in late December 2019. The proposed changes are designed to update the regulatory framework as much as possible within the constraints of the existing…
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Client Memorandum: FSOC Shift to an Activities-Based Approach Signals an Emphasis on the Risks to Financial Stability from Digital Transformation
The Financial Stability Oversight Council’s (FSOC) recently revised guidelines (the 2019 Guidelines) on how it will identify and address financial stability risks are a major shift from the guidelines it issued in the immediate aftermath of the Financial Crisis. The 2019 Guidelines draw upon lessons learned from…
Continue Reading Client Memorandum: FSOC Shift to an Activities-Based Approach Signals an Emphasis on the Risks to Financial Stability from Digital Transformation
The Last Piece of the Puzzle: CFTC Reopens Comment Period for Capital Requirements and Proposes Amendments to Inter-Affiliate Swap Clearing Exemption
On December 10, 2019, the CFTC reopened the comment period for the proposed capital requirements for swap dealers (SDs) and major swap participants (MSPs) that are not subject to the capital rules of a prudential regulator (together, Covered Swap Entities). These rules are the last…
Continue Reading The Last Piece of the Puzzle: CFTC Reopens Comment Period for Capital Requirements and Proposes Amendments to Inter-Affiliate Swap Clearing Exemption
CFTC Staff Issues Guidance Regarding Annual Chief Compliance Officer Reports
The CFTC’s Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued an advisory on December 4, 2019 to provide further guidance regarding the preparation and submission of chief compliance officer (“CCO”) annual compliance reports (“CCO Annual Reports”) for swap dealers (“SDs”), futures…
Continue Reading CFTC Staff Issues Guidance Regarding Annual Chief Compliance Officer Reports