The CFTC is cracking down on the alleged failures of supervisory systems and other controls that swap dealers and other swap industry participants have set up to be compliant. In particular, the regulator has just announced enforcement actions against Société Générale S.A., Mizuho Capital Markets, and the Refinitiv SEF, among others. “Swap dealer registrants must… Read More >>
Gensler’s SEC Chair Nomination Advances Amid GOP Pushback
Gary Gensler, President Joe Biden’s nominee for SEC chairman, last week won the approval of the U.S. Senate Banking Committee by a vote of 14 in favor to 10 against, signaling some resistance among Republicans as his nomination moves to a full vote before the U.S. Senate. If approved by the Senate, Gensler and the… Read More >>
CFTC Fines Citi for Glitchy Audio Recording System
The Commodity Futures Trading Commission has fined specific Citibank swap dealers who erased key 2018 recordings that were meant for preservation and review by the CFTC’s division of enforcement. The CFTC’s $4.5 million penalty hits Citibank N.A. and Citigroup Energy Inc., two registered swap dealers, and Citigroup Global Markets, Inc., a registered swap dealer and… Read More >>
Morgan Stanley Settles Swaps Reporting Case for $5M
The Commodity Futures Trading Commission reports simultaneously filing and settling charges against Morgan Stanley Capital Services LLC, a provisionally registered swap dealer, for its alleged failures to “comply with swap data reporting obligations.” The CFTC’s order requires Morgan Stanley Capital Services to “pay a $5 million civil monetary penalty and to retain a qualified outside… Read More >>
JPMorgan Pays $65M to Settle ISDAFIX Case
The CFTC has settled its benchmark manipulation case against JPMorgan Chase (JPMC) via an order that requires the firm to pay a $65 million civil monetary penalty, and to strengthen its internal controls and procedures to prevent any future attempts to fix interest-rate swaps benchmarks. The order settles charges that JPMC attempted to manipulate the ISDAFIX benchmark “over… Read More >>
Broadridge Partners with StatPro for Performance Analytics
Broadridge Clients to Get Access to StatPro’s Cloud Post-trade systems and services provider Broadridge Financial Solutions reports a new strategic partnership with StatPro Group, a provider of cloud-based portfolio analytics and asset pricing services for the asset management industry. This partnership enhances the existing Broadridge performance reporting platform, which allows clients to receive customized daily… Read More >>
Client Cleared Trades Part of Mexican Peso Compression Cycle
In a pioneering effort, client cleared trades were included in a triReduce Mexican Peso (MXN) compression cycle via CME Clearing, according to officials at TriOptima, a vendor offering risk mitigation support for over the counter (OTC) derivatives markets. This latest cycle involved 17 participants, officials say. Client cleared trades are transactions that a clearing broker… Read More >>
ISDA’s SIMM Gets a Refresh
The Standard Initial Margin Model (SIMM), a methodology for calculating initial margin for non-cleared derivatives instruments developed by the International Swaps and Derivatives Association (ISDA) is a work-in-progress, confirms Scott O’Malia, ISDA CEO, in a new posting for the ISDA blog derivatiViews. The need for new initial margin calculation requirements drove the creation of SIMM… Read More >>
Deutsche Bank Shutters OTC Swaps Clearing for the U.S.
Deutsche Bank ended its over-the-counter (OTC) swaps clearing business for the U.S. market last week because of a streamlining push by bank officials to move out of profit-challenged businesses, according to a source familiar with the situation. For Deutsche Bank and other organizations offering clearing support, the OTC swaps clearing business in the U.S. has… Read More >>
Citi Pays $25 Million Penalty for Spoofing
The CFTC has fined Citigroup Global Markets Inc. $25 million for spoofing, citing the actions of traders and managers who demonstrated a lack of proper supervision, training and regulatory compliance. Spoofing, the commission says, is “bidding or offering with the intent to cancel the bid or offer before execution.” In this case, the spoofing took… Read More >>
