Last week, the CFTC’s Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued time limited no-action relief to a regional commercial bank holding company and its insured depository institution (“IDI”) subsidiaries from having to count certain loan-related swaps toward its swap dealer de minimis threshold.  Currently,
Continue Reading CFTC Staff Provides Time Limited De Minimis Relief to a Regional BHC and its IDI Subsidiaries

The CFTC unanimously approved Final Rule amendments on August 21, 2018 to the regulations governing chief compliance officer (“CCO”) duties and annual compliance reporting requirements for FCMs, swap dealers and MSPs (“Registrants”). These amendments are the first substantive rule amendments to be adopted under Chairman Giancarlo’s
Continue Reading CFTC Adopts Final Rule Amendments Simplifying CCO Duties and Annual Report Rules for FCMs, Swap Dealers and MSPs

Financial services regulatory reform in 2018 continues to evolve.  For those of you who have been thinking you might catch up over the summer lull, here is the summer beach read edition of our reference tool, which provides context and summarizes current developments across a range of key regulatory areas,
Continue Reading Davis Polk Financial Services Regulatory Reform Tool—Summer Beach Read Edition

CFTC Chairman J. Christopher Giancarlo and CFTC Chief Economist Bruce Tuckman released a White Paper on April 26, 2018 that reflects the authors’ personal views on the need for swaps regulatory reforms in the United States in five key areas:

  1. swap execution on swap execution facilities (“SEFs”);
  2. trade


Continue Reading CFTC Chairman Giancarlo’s White Paper on Swap Regulation Reform Envisions Near-Term Changes and Longer-Term Enhancements

With virtual currency markets booming and bitcoin prices at record highs, U.S. financial regulators have been—each in its own manner—considering whether and how to regulate virtual currencies and related products.  Last week, the U.S. Commodity Futures Trading Commission (CFTC) announced that three futures exchanges—CME, Cboe Futures Exchange, and Cantor Exchange—self-certified
Continue Reading The CFTC Forges Ahead with Listed Bitcoin Derivatives

CFTC Chairman Giancarlo testified this morning that he intends to delay for an additional year a decision on whether to modify the currently effective swap dealer de minimis registration threshold of $8 billion notional of dealing swaps.[1] This request follows on the heels of a recommendation by the U.S. Treasury,
Continue Reading CFTC Chairman Requests Additional Year to Evaluate the Swap Dealer De Minimis Threshold

There has been significant attention to the first major policy speech by the CFTC’s newly-minted Enforcement Division Director, James McDonald on September 25, 2017.  Mr. McDonald’s speech outlined the Enforcement Division’s updated approach to self-reporting and cooperation, as described in an enforcement advisory update issued to coincide with his speech
Continue Reading Key Takeaways from CFTC Enforcement Director’s Speech and Q&A on Self-Reporting

In a closely watched case, the Seventh Circuit last week affirmed the felony conviction of Michael Coscia, a New Jersey high frequency trader, rejecting his arguments that the anti-spoofing provision in the Commodity Exchange Act under which he was charged is unconstitutionally vague and that the evidence in the
Continue Reading Spoofing Rule Governing Commodities Trading Survives Constitutional Vagueness Challenge in the Seventh Circuit

The CFTC’s position limit rules, which currently apply to limited types of futures contracts and options on futures, include aggregation requirements that specify the circumstances under which positions controlled or held by a person must be counted together for purposes of the position limits.  These aggregation rules were significantly amended
Continue Reading CFTC Staff Extends Position Limit Aggregation Relief

The CFTC staff has once again extended its no-action relief from the “arrange, negotiate or execute” provisions of CFTC Advisory 13-69, the controversial 2013 advisory that applies transaction-level swap requirements based on the involvement of U.S.-located personnel.  Today’s relief differs from previous relief in that it does not have
Continue Reading Further Extension of CFTC “Arrange, Negotiate, Execute” No-Action Relief