When the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law last month, we ran a poll question on our website asking whether it: a) ends “too big to fail,” b) doesn’t end “too big to fail,” or c) is a full employment act for lawyers. Most of those who responded chose option c, and from the looks of things at the Futures Industry Association‘s financial reform forum in Chicago yesterday, they were right. The forum was packed with lawyers who will be very busy over the next year as new rules stemming from the legislation are put in place. Their discussion on the new rules was complicated and mind-numbing, and it seemed like the only certainty at this point is that there are many UNcertainties. (more…)
Posts Tagged ‘CFTC’
New regulations: Clear as mud
Wednesday, August 18th, 2010And so it begins…
Thursday, July 22nd, 2010Everything we’ve been hearing from analysts and industry vets indicates that yesterday’s signing into law of the Wall Street Reform and Consumer Protection Act is only the beginning of the path to actual financial reform. Now a long, complicated process of rulemaking begins for the regulators, and that could take up to a year. Just how complicated the process will be was made clear yesterday when the Commodity Futures Trading Commission (CFTC) released a rulemaking list for OTC derivatives, based upon provisions in the Act, which contained a whopping 30 categories. (more…)
Financial reform is law, but what happens now?
Wednesday, July 21st, 2010President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law today, but this is far from the end of the road in financial reform. In fact, it’s just the beginning of a longer process, and the devil is definitely in the details. The law gives most of the power to the regulatory agencies to actually make the rules, a process that could take up to a year, analysts say. And a history of lack of cooperation and regulatory overlap in some financial products from the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) only complicates matters. Many experts still aren’t sure of the exact ramifications of the law. (more…)
Big brother alert
Tuesday, July 13th, 2010On July 12 the Commodity Futures Trading Commission (CFTC) proposed rulemaking that “calls for the collection of certain ownership, control and other information for all trading accounts active on U.S. futures exchanges and other reporting entities.”
I did a double take when I read it. What stuck in my head was the word “all”. Not to sound all conspiratorial but “all trading accounts active on U.S. futures exchanges and other reporting entities.”
Lights, camera, no action
Tuesday, June 29th, 2010The battle to trade box office futures received a major blow on Friday when the House and Senate put together a final version of the financial reform bill, the Restoring American Financial Stability Act. The bill, which is expected to be signed into law before July 4, included a ban on trading box office futures. The Commodity Futures Trading Commission approved Cantor Exchange‘s box office receipts contracts yesterday, but according to CNBC, Cantor will not fight legislative efforts to ban movie futures and will instead focus on foreign currency products. The same can’t be said for the other exchange that hopes to launch movie futures, Trend Exchange, as they reportedly will issue a legal challenge to offer movie futures.
OTC derivatives: Growth and change
Tuesday, June 22nd, 2010The over the counter (OTC) derivatives market has come under pressure in the aftermath of the economic meltdown and subsequent increased regulatory challenges. However, according to a new study by Aite Group, OTC asset classes are experiencing growth again, with growth in the credit default swaps (CDS) market outpacing other asset classes. According to the report, the drivers of this growth included a steady need for derivatives during the credit crisis and the development of central counterparties by exchanges to clear CDS. (more…)
Will George Clooney be there?
Wednesday, May 12th, 2010Is the futures industry going Hollywood? That’s the question as the battle over approval of futures contracts based on box office receipts continues. The Commodity Futures Trading Commission (CFTC) is apparently giving serious consideration to the contracts, though, as they announced today that there will be an open meeting on May 19 to consider them. But you have to wonder: are traders in general actually taking this seriously? (more…)
Was it those guys in Chicago?
Wednesday, May 12th, 2010There have been a number of theories floated regarding what caused last Thursday’s “flash crash” in equity markets but to date no one has provided a definitive explanation.
The first story was that someone keyed in “B” for billion instead of “M” for million on an equity order in Procter & Gamble. P&G was one of the first stocks where odd price behavior was observed, which is probably the essence of that rumor. That has never been confirmed and I am not sure of any system that accept orders that way, most you must enter the numeric value — hence the term fat fingered error (holding down the zero key for an extra beat increasing the order X10, X100 or X1,000). A larger broker dealer that was cited in several stories denied that a fat fingered error by one of its traders was the cause of the crash. (more…)
Blame Mrs. O'Leary, not the cow
Friday, March 26th, 2010I admit I had never seen new Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler speak before an audience. It isn’t because he’s been shy: since he joined the CFTC last year he has stormed through trading-related organization meetings giving speeches, reminiscent to Sherman’s army. And as the opening keynote at the Futures Industry Association’s (FIA) annual meeting in Boca Raton, Fla., Gensler did not disappoint.
