The CFTC has ordered Morgan Stanley and Co. to pay a $350,000 penalty for omitting futures and options data from its required part 17 large trader reports. Morgan Stanley’s omissions spanned a 10-year period, from 2007 to 2017, and affected “thousands of line items of information,” according to the CFTC’s order, which simultaneously filed and… Read More >>
CFTC Strikes Swaps Equivalency Accord with E.C.
In a step toward the nirvana of harmonization, the CFTC and European Commission (E.C.) moved forward with an agreement to accept the legitimacy of each other’s rules on swap margin agreements and to allow swap trading venues under their jurisdictions to follow their home region’s rules. The two-part agreement covers the comparability of trading platforms… Read More >>
Clearinghouses Pass CFTC Liquidity Stress Tests
The CFTC’s recent settlement liquidity stress test analysis of three well-known clearinghouses — CME Clearing, ICE Clear U.S., and LCH, Ltd. — finds that all three could “meet their settlement obligations on time,” despite simulated defaults by clearing members. The CFTC analysis, which follows its initial supervisory stress test of clearinghouses that was published in… Read More >>
NEX Optimisation CEO to Leave as Division Revamps
Global COO Ken Pigaga to Be New CEO of NEX Optimisation Jenny Knott, the CEO of the NEX Optimisation post-trade division of NEX Group, is stepping down from her post as the division undergoes a restructuring, according to NEX Group officials. In addition, Ken Pigaga, global chief operating officer (COO) of NEX, has been appointed… Read More >>
Morgan Stanley’s FCM Subsidiary Penalized $500,000
The CFTC has settled charges against Morgan Stanley & Co. LLC, for “failing to diligently supervise the reconciliation of exchange and clearing fees with the amounts it ultimately charged customers for certain transactions on the CME Group, ICE Futures US, and other exchanges.” Headquartered in New York City, Morgan Stanley & Co., or MSCO, is… Read More >>
CFTC Hires Director for Swap Dealer Oversight Division
Partner from Steptoe & Johnson Law Firm Joins as DSIO Director Arrivals and departures are continuing at the CFTC. Matthew B. Kulkin has been named director of the CFTC’s division of swap dealer and intermediary oversight (DSIO), joining from the Steptoe & Johnson LLP law firm, where, as a partner, he “advised financial market participants… Read More >>
Citi Settles Swap Data Reporting Violations Case
Citibank, N.A. (CBNA) and Citigroup Global Markets Ltd. (CGML) have settled with the CFTC on charges that they failed to properly report Legal Entity Identifier (LEI) information about swap transactions properly to a swap data repository (SDR). CBNA acts as a swap dealer and has been registered with the CFTC since December 31, 2012 while… Read More >>
Merrill Lynch Settles CFTC Case of Supervisory Breaches
The CFTC has required Merrill, Lynch, Pierce, Fenner & Smith Inc. to pay a $2.5 million civil monetary penalty for “failing to supervise its employees’ and agents’ handling of the firm’s response to a CME Group investigation into futures block trade execution and recordkeeping practices at Bank of America.” Bank of America, N.A., or BANA,… Read More >>
McLoughlin Named Sole CEO of BGC Financial for the Americas
Former Co-CEO to Oversee Special BGC Projects BGC Partners, an interdealer broker and technology provider, has appointed Shawn McLoughlin as CEO of BGC Financial for the Americas region, effective immediately. McLoughlin, who has been serving as an executive managing director and co-CEO of BGC Financial, Americas, with Lou Scotto “to define business strategy for new… Read More >>
CFTC Launches Portal for Large Trader Reporting Program
The CFTC is hoping that it is dealing with “some industry concerns” with the launch of “an improved online filing portal” for industry participants that need to submit CFTC Form 40, known as the “Statement of Reporting Trader,” a key part of its large trader reporting program. “The CFTC operates a comprehensive system of collecting… Read More >>
