   The Futures Industry Association submitted a comment letter to the Commodity Futures Trading Commission on Jan. 15, 2009 responding to a CFTC proposal that would authorize a bankruptcy trustee to operate a commodity brokerage business for a limited period of time. The FIA agreed that the proposed authorization would be appropriate when dealing with insolvent firms, as in the case of Lehman Brothers Inc. But the FIA said it could not support the proposal in its present form for three main reasons. First, the FIA urged the CFTC to address this issue in the context of a “comprehensive review” of the bankruptcy code and the CFTC’s rules in this area. Second, the FIA urged the CFTC to work with the Securities and Exchange Commission on “uniform procedures” to guide a trustee of an insolvent firm that is registered as both a broker-dealer and a futures commission merchant. Third, the FIA recommended that the proposal should provide more detailed guidance to a trustee and CFTC staff.  Click Here for the PDF
|
Jan. 14, 2010 The Commodity Futures Trading Commission today is holding a public meeting to discuss whether to release a proposed rule to set position limits in the energy futures and options markets. The proposed rule, which will be published in the Federal Register after the meeting, will apply to contracts based on four commodities: light, sweet crude oil; Henry Hub natural gas; New York Harbor No. 2 heating oil; and New York Harbor gasoline blendstock. The proposed rule, if finalized in its present form, would establish a framework for a new set of limits on speculative positions for all contract months combined, single month, and spot month. The proposal also would provide exemptions for bona fide hedging transactions and a risk management exemption for swap dealers. The comment period on the proposed rule will be 90 days. For more information on the CFTC position limit proposal and current position limit policy, including links to policy documents released at today’s public meeting, please visit the position limit page on the FIA website at http://www.futuresindustry.org/position-limits-.asp |
The letter noted that broker-dealers are only one of many different types of financial institutions that are permitted to act as counterparties to retail customers with respect to over-the-counter retail forex transactions. These include futures commission merchants, forex dealers, banks and insurance companies. By proposing to fix a leverage limitation that is significantly lower than market convention, the proposed rule effectively would prohibit dually registered entities from competing in this line of business, the letter argued. “We respectfully submit that such a result is both self-defeating and unsound as a matter of regulatory policy,” the letter said. Instead the SEC and FINRA should pursue a “coordinated regulatory approach” with the other regulatory agencies with authority in this area, namely the Commodity Futures Trading Commission and the National Futures Association. “Such a coordinated regulatory approach would also provide a more level playing field, thereby assuring that no category of registrant…would have a competitive advantage,” the letter said. Click Here for the Comment Letter |
| FIA, SIFMA Comment on FINCEN Proposals on Information Sharing Procedures The Futures Industry Association and the Securities Industry and Financial Markets Association co-signed a Dec. 16 letter to the Treasury Department's Financial Crimes Enforcement Network. The two associations commented jointly on proposals regarding the expansion of special information sharing procedures that are intended to deter money laundering and terrorist activity. While FIA and SIFMA support efforts to combat terrorism and money laundering, they cautioned that the proposals could go beyond the intent of current law. Click Here for the Comment Letter (1.5 MB) |
| FIA Supports KCBT Petition to Clear Wheat SwapsThe Futures Industry Association filed a comment letter on Dec. 14 supporting a petition by the Kansas City Board of Trade related to the clearing of wheat calendar swaps that are traded over-the-counter. The KCBT has asked the Commodity Futures Trading Commission for permission to hold the positions and the associated customer margin in segregated accounts. In supporting this request, the FIA noted that the CFTC had approved similar requests from ICE Clear U.S. and CME Group. The FIA also reiterated prior comments that the CFTC should develop “objective standards” for determining what OTC cleared-only products may be included in segregation. Click Here for PDF |
| FIA Statement on Passage of H.R. 4713Washington, D.C. —Dec. 11, 2009—The Futures Industry Association today issued the following statement in response to the passage of H.R. 4713, The Wall Street Reform and Consumer Protection Act of 2009. The Futures Industry Association has long favored closing gaps in the regulation of derivatives and promoting the value of the price discovery and hedging benefits provided by futures markets. The legislation passed today by the House of Representatives is an important step in this process. We look forward to working with the Senate to further improve this legislation. |
| Lynch Amendment to H.R. 4173 on Clearing Washington, D.C.—Dec. 7, 2009—The Futures Industry Association today sent a letter to Congress urging lawmakers to oppose a clearinghouse-related amendment to H.R. 4173, the financial reform legislation now pending in the House of Representatives. The amendment, which is expected to be offered by Representative Stephen Lynch (D-Mass.), is designed to eliminate one group of market participants from the expected competition to clear over-the-counter swaps. In addition to reducing competition, the amendment would prevent clearing members that put up their capital to guarantee trades through clearing from having a meaningful voice in the operations of any clearinghouse. The House is scheduled to begin voting on H.R. 4173 this week. The legislation, the Wall Street Reform and Consumer Protection Act of 2009, contains measures to regulate the trading and clearing of OTC derivatives. Click Here for the Text of the FIA letter on the Lynch Amendment. |
“Our members are strongly of the view that continued reform and modernization of China’s financial sector is essential if China is to achieve its own economic goals of maintaining high rates of growth and job creation and building a more services-based, consumer-driven economy,” the coalition said in its letter. “Such reform and modernization should be based on the following core principles: (1) eliminating equity limits on ownership, permitting corporate form of choice, and removing limits on geographic expansion and restrictions on product offerings in the financial services sector, and; (2) ensuring that foreign financial sector participants and investors are treated on the same basis as domestic investors; and (3) improving regulatory and procedural transparency.” Click Here for the Text of the Letter |
| FIA Submits Comments on Changes to COT ReportsThe Futures Industry Association on Oct. 1, 2009 submitted a comment letter to the Commodity Futures Trading Commission in connection with the recent amendments to the commitment of traders report. FIA suggested that the Commission add information to the report clarifying trading included in each category and provide a review process of categories assigned to market participants. Additionally, FIA expressed strong support for the long-standing Commission policy of requesting public comment whenever possible before taking action that affects industry participants. Click Here for Complete Text |
| | | |   | | Monday, February 08 | | CME Group clashes with tiny rival over freedom to trade (Medill) | 207 | | Central clearing is cheaper than OTC, exchange claims (FOi) | 173 | | London home to most powerful hedge fund women (Times) | 140 | | Regulators take aim at unrealised derivatives profits (Risk.net) | 116 | | Icap investor concerns deepen (FT) | 110 | | Some wary of SEC's high-frequency presumptions (Reuters) | 107 | | Talks With G.O.P. on Financial Bill at ‘Impasse,’ Dodd Says (NY Times) | 90 | | Fraud Besets EU Carbon Trade System (NY Times) | 88 | | Jobs Data, Stock Moves Drive Crisis-Level Trading At CME Group (DowJones) | 85 | | Bond Traders See Slim Pickings With Volcker Rule: Caroline Baum (Bloomberg) | 85 | | Speculators build record bets against euro (FT) | 72 | | Plan to Create Longevity-Risk Market May Succeed, Moody's Says (Bloomberg) | 72 | | Deutsche Bank unveils plans for Asia growth (FT) | 71 | | Brevan Howard staff in London to be offered Geneva move (FT) | 71 | | Interview: Donald Brydon will step down as LME chairman (Metal Bulletin) | 67 | | Sins of Past Guide Asian Banks (WSJ) | 65 | | Indian Bourse Boosts System as Volumes Rise, Angel Broking Says (Bloomberg) | 65 | | AIG hiring KeyCorp exec to oversee finance, risk (Reuters) | 62 | | G-7 Seeks to Calm Market Fears (WSJ) | 61 | | G-7 Agree Banks Must Help Pay Crisis Costs -German Official (DowJones) | 60 | | Friday, February 05 | | Senior Trader Leaving Citigroup (WSJ) | 164 | | CME and MF Global hit by trading slowdown (FT) | 151 | | CME plays down fears over trading reforms (FT) | 117 | | Senators at odds over derivatives end-user exemptions (Risk.net) | 115 | | CME, CBOE bank on exclusive indexes (Chicago Tribune) | 98 | | Citigroup Trading-Unit Head Carpenter Quits for Moore (Bloomberg) | 96 | | Dodd Denounces Pace of Banking Overhaul (NY Times) | 88 | | CME Group's Position Strong, Despite Threats - CEO (DowJones) | 87 | | Survey sees threat to derivatives volumes (FT) | 83 | | CFTC to create risk management office with funding (Reuters) | 82 | | Arbitrator Out of Work? Call Finra (WSJ) | 74 | | Financial Reform Bill May Be Near Make-Or-Break Point In Senate (CNBC) | 71 | | Taiwan Pushes Companies to Begin Buying CO2 Permits (Bloomberg) | 71 | | Icap warns of risks posed by new regulation (FT) | 70 | | Macquarie extends reach in European derivatives (FT) | 70 | | Staff of AIG derivatives unit agree to bonus cuts (MarketWatch) | 66 | | Barclays Comes to AIG's Aid in Derivatives Deals (Reuters) | 64 | | Cost of Insuring Debt Alarms Investors (WSJ) | 62 | | Hedge funds, bankruptcy judges spar over disclosure (Reuters) | 62 | | Icap says to miss profit expectations (Reuters) | 61 | | Read More E-clips » |
E-clips users: Please note that these news stories are drawn from independent sources. The FIA does not verify or endorse any of these articles, and takes no responsibility for their contents. Please contact Will Acworth at the FIA if you have any questions or suggestions regarding this service. (202) 466-5460 |
|
