Thursday, June 18th, 2009
Industry leaders wasted no time commenting on the Obama Administration’s new regulatory reform proposal, “Financial Regulatory Reform: A New Foundation,” released yesterday.
The proposal received mostly a chorus of praise from the industry. CME Group called it “a significant step towards restoring confidence in the integrity of financial markets.” International Swaps and Derivatives Association CEO Robert Pickel said in a statement that it “provide[s] an important framework for financial regulatory reform.” In his statement, Futures Industry AssociationPresident John Damgard “commend[ed] the administration for the thoughtfulness and comprehensiveness of its plan.” In a statement, Chicago Board Options Exchange ChairmanBill Brodsky said, “We are particularly pleased that the plan recognizes the need for greater coordination and harmonization of the SEC and CFTC, including streamlining the approval of new products and rule filings.” But not everyone is singing the proposal’s praises. (more…)
Tags: Barack Obama, Bill Brodsky, CBOE, CFTC, CME Group, credit default swaps, John Damgard, OTC, Robert Pickel, SEC, Treasury Department
Posted in Regulatory/actions | 1 Comment »
Wednesday, May 13th, 2009
The U.S. Treasury’s 2010 revenue proposal, released Monday, included a bombshell for the futures and options industry: the possibility of the end of preferential 60/40 tax treatment for futures and options. Under the 60/40 rule, enacted 25 years ago, for U.S. futures contracts 60% of gains are considered long-term gains, taxed up to 15%, and the remaining 40% of gains are considered short-term gains, taxed up to 35%. The Treasury’s proposal would eliminate 60/40 treatment. (more…)
Tags: 60/40 tax treatment, CBOE, Treasury Department
Posted in General, Regulatory/actions | 2 Comments »
Tuesday, February 10th, 2009
The verdict for the new bailout plan is in, and it stinks. Treasury Secretary Timothy Geithner announced the new $1.5 trillion financial rescue plan this morning, and the Dow Industrials promptly dropped 300 points. The Senate then approved the stimulus plan by a vote of 61 to 37. The massive market sell-off continued throughout the day, with stock indexes dropping 4-5% after Federal Reserve Chairman Ben Bernanke discussed economic rescue plans with the House of Representatives, according to Market Watch. Headed into the close, the Dow was hovering around 7,800. Ouch.
Tags: bailout, Ben Bernanke, DJIA, Dow Jones Industrial Average, Timothy Geithner, Treasury Department
Posted in Markets, economy | 2 Comments »
