By Gina ChonPublished March 7, 2014 Financial Times
US Senators on Thursday pressed nominees for the Commodity Futures Trading Commission to be tough on enforcement over market manipulation and fraud.
The Senate Agriculture Committee heard from CFTC chairman nominee Timothy Massad and from two commissioner nominees before committee members vote on their posts in a few weeks.
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By Liz SaleckaPublished March 7, 2014 Financial News
The reporting of derivative trades under the European Market Infrastructure Regulation is proving anything but a clear-cut exercise and, as issues persist, many industry players believe it could take up to six months longer to get things right.
By Scott PattersonPublished March 7, 2014 Wall Street Journal
A trio of math and finance professors has created a computerized program to test whether regulators listen to the public when crafting new regulations. The simple answer: Yes.
How they reach that conclusion is far less straightforward. The program, which the professors dubbed “RegRank” in a January paper, uses an automated “machine-learning” method—geekspeak for artificial intelligence—to search through thousands of comment letters from the public and the regulations themselves.
By Tim DevaneyPublished March 6, 2014 The Hill
A leading House Democrat on the Appropriations Committee said Thursday that the federal regulator for commodities has such a small budget that it "sucks."
During a hearing, Rep. Sam Farr (D-Calif.) said the Commodity Futures Trading Commission (CFTC) is grossly underfunded and called on Congress to give the agency more money to regulate commodity markets such as oil, gold, wheat and coffee.
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By Philip StaffordPublished March 5, 2014 Financial Times
A global regulatory initiative to rewrite the way derivatives contracts work in a default may be slowed amid concerns that parts of the industry will not sign up to the changes.
The International Swaps and Derivatives Association, a trade association, has been working for nearly a year on contracts that will give failed institutions a temporary stay on investors’ claims on their swaps. The legal rights are triggered by a default on payments.
By Silla BrushPublished March 6, 2014 Bloomberg
Three nominees for seats at the top U.S. derivatives regulator face questions about how tenaciously they’ll enforce the Dodd-Frank Act’s restrictions on the swaps market at a Senate confirmation hearing in Washington.
Timothy Massad, 57, the Treasury Department official nominated by President Barack Obama to serve as chairman of the five-member Commodity Futures Trading Commission, has drawn skepticism from outside interest groups about his views on regulation and how he’d lead the agency.
By Viren VaghelaPublished March 5, 2014 Asia Risk
Regulators’ mixed messages on the requirement of legal entity identifiers (LEIs) for trade reporting are believed to be behind weak adoption of the 20-digit identity code.
The European Securities Market Authority (ESMA) has said the LEI or pre-LEI is not specifically required under the European market infrastructure regulation (EMIR), but the UK's Financial Conduct Authority has interpreted it differently, saying it may take a harsher line when counterparties do not comply with the LEI requirement.
By Ian KatzPublished March 3, 2014 Bloomberg
U.S. regulators will focus this year on improving transparency in derivatives markets and continue to analyze whether asset-management firms pose a potential risk to economic stability, the U.S. Treasury Department’s top domestic-finance official said.
Mary Miller, the undersecretary for domestic finance and acting deputy secretary, said she will emphasize the “need for an effective swaps data reporting regime, one designed to ensure that we have the information necessary to develop a comprehensive picture of market exposures and risks.” She was to speak at a conference held by the Institute of International Bankers in Washington today.
By Silla BrushPublished March 1, 2014 Bloomberg
President Barack Obama is set to seek a $280 million budget for the U.S. Commodity Futures Trading Commission that, while more than the commission currently gets, is lower than his previous request for an agency that has said it lacks the resources to fully oversee markets, according to people with knowledge of the matter.
Obama’s request for the fiscal year beginning Oct. 1, a cut of more than 10 percent from the $315 million he sought in his previous proposal, would be a 30 percent increase from the current level of $215 million for the derivatives regulator, according to the people, who asked for anonymity because the budget request won’t be unveiled until March 4.
By Christopher WhittallPublished February 26, 2014 IFR
The new global regulatory framework for derivatives will cost JP Morgan around US$1bn in revenues per year, shaving 5% off its overall markets revenues by 2016.
The figures published in investor presentations yesterday give one of the clearest indications yet of the impact of central clearing, electronic trading, reporting and initial margin rules, which are set to change the face of the derivatives industry.
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