CHS Hedging, a registered futures commission merchant based in Inver Grove Heights, Minn., is paying a penalty of $6.5 million to the Commodity Futures Trading Commission to settle charges that it had inadequate anti-money laundering (AML), risk management, recordkeeping, and supervisory controls over a trading account of a cattle rancher running a $244 million “Ghost… Read More >>
BNY Mellon & Baton Bring DLT to Collateral & Other News
BNY Mellon & Baton Systems Form Partnership Distributed ledger technology (DLT) is at the heart of a new post-trade, collateral management collaboration between BNY Mellon and Baton Systems. The joint offering links Baton’s central clearing counterparty (CCP) network with BNY Mellon’s Enterprise Continuous Portfolio Optimization (ECPO) service in an effort to help mutual clients improve… Read More >>
Firms Are Behind On CFTC Rewrite Deadline: Survey
More than half of the respondents to a recent survey say that they are behind in meeting the pending reporting requirements for what is known as the “Commodity Futures Trading Commission (CFTC) Rewrite,” which means that they might miss the December implementation deadline. The CFTC Rewrite refers to the changes coming to the over-the-counter (OTC)… Read More >>
BNP Paribas & ISDA Test Digital Reporting to CFTC
French banking giant BNP Paribas and the International Swaps and Derivatives Association (ISDA) report that in a bid to transform post-trade operations for over-the-counter (OTC) derivatives they “successfully implemented and tested” a way to facilitate the digital reporting of swaps data that conforms to revised rules to come from the U.S. Commodity Futures Trading Commission… Read More >>
FSB Pushes Global Regulatory Framework for Crypto
The Financial Stability Board (FSB) has published a proposed framework for the international regulation of crypto-asset activities. Elements of the FSB’s proposed framework include “recommendations that promote the consistency and comprehensiveness of regulatory, supervisory and oversight approaches to crypto-asset activities and markets and strengthen international cooperation, coordination and information sharing; and revised high-level recommendations for… Read More >>
Wall Street Slammed for Not Tracking Off-Channel Communication
The SEC and the CFTC have taken on major Wall Street firms and penalized them for alleged “widespread recordkeeping failures” and have gotten the firms to acknowledge their shortcomings and to pay penalties in the millions. The SEC alone has racked up $1.1 billion in penalties from 16 firms and the CFTC has settled charges… Read More >>
DTCC’s ‘Project Ion’ Hits a Milestone & Other News
DLT System Settles 100,000 Transactions Per Day The DTCC’s alternative settlement platform based on blockchain/distributed ledger technology (DLT), Project Ion, has achieved a new threshold — it’s parallel processing more than 100,000 bilateral equity transactions daily and almost 160,000 transactions on peak days via the DTCC subsidiary, the Depository Trust Company (DTC). “The goal of… Read More >>
CFTC Ends LIBOR for IR Swaps & Other News
CFTC Amends & Ends LIBOR Usage The Commodity Futures Trading Commission (CFTC) has issued a final rule ending the requirement that interest rate swaps reference the London Interbank Offered Rate (LIBOR) in order to complete the clearing process — another milestone marking the end of the scandal-ridden LIBOR. The final rule modifies the CFTC’s… Read More >>
Two Ex-JPMorgan Traders Convicted for Market Manipulation
A federal jury in the Northern District of Illinois recently found two former precious metals traders at JPMorgan Chase & Co., guilty of fraud, attempted price manipulation, and spoofing via a precious metals futures contracts scheme that occurred over an eight-year period and encompassed “thousands of unlawful trading sequences,” authorities say. The two, now-convicted, ex-traders… Read More >>
Canada Puts Crypto-Trading Platforms on Notice
During this winter of discontent and falling values for the crypto world, many are waiting for the regulators in the U.S. and elsewhere to solidify the rules of the road. Industry participants are looking to SEC Chair Gary Gensler, the CFTC, the Fed, U.S. Senators, E.U. agencies, and multinational organizations to coordinate a response or… Read More >>
