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US, EU Differences on Cross-Border Rules Risk Permanent Liquidity Drain: O'Malia

By Christopher Tremulis
Published July 15, 2014 Platts

US and European regulators must quickly come together to harmonize international derivatives trading rules before market fragmentation and low liquidity become lasting fixtures of the swaps and futures markets, Commissioner Scott O'Malia of the US Commodity Futures Trading Commission said Tuesday.

In a keynote address before a quadrilateral meeting of financial lawyers groups at the Federal Reserve Bank of New York, O'Malia renewed calls for the European Commission and the CFTC to declare that the US regulatory regime is equivalent under the European Market Infrastructure Regulation.

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Data Woes Move Front and Center

By Mike Kentz
Published May 27, 2014 IFR

Discrepancies in how the four main US swap trade repositories collect and store data is threatening to derail regulatory efforts to build a comprehensive view of the over-the-counter derivatives market – a key tenet of the 2009 G20 agreement on financial reforms.

CFTC Commissioner Scott O’Malia will outline a plan for reconciling the various forms of data being reported across the market at a Technology Advisory Committee meeting on June 3, but brokering a compromise is likely to be an uphill struggle.

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Concerns Raised Over MiFID Consultation Timetable

By John Bakie
Published May 28, 2014 The Trade

The European Securities and Markets Authority’s (ESMA) discussion paper on MiFID II, published last week, gives some initial insights into the practical implications of the upcoming regime, though there remains much uncertainty.

ESMA has published two papers on MiFID II. The first is a consultation the regulator will use to provide the European Commission with additional advice about the implementation process, outlining the potential impact of some measures and performing a cost-benefit analysis of the process.

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CFTC’s O’Malia Makes Urgent Call for Transatlantic Data Sharing

By John Bakie
Published May 22, 2014 The Trade

Negotiations between US and European regulators on how best to utilise swap reporting data should begin immediately, commissioner Scott O’Malia of the Commodity Futures Trading Commission (CFTC) has said.

Speaking before yesterday’s meeting of the US derivatives regulator’s influential Global Markets Advisory Committee, he said not enough was being done to harmonise reporting and share data to fully understand systemic risks in the global swaps market.

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Scott O'Malia, It's Your Fault

By Duncan Wood
Published May 1, 2014 Risk

Sorry, that might sound a little rude. I should probably explain. At this year’s Futures Industry Association get-together in Boca Raton in March, Risk had the chance to speak with O’Malia – one of the commissioners at the Commodity Futures Trading Commission (CFTC). The topic of swaps market fragmentation came up. 

This is the idea, bandied around for the best part of a year now, that the different timelines for over-the-counter derivatives reforms would result in non-US market participants avoiding US counterparties because they would not want their trades to be subject to clearing requirements, or the need to execute on a swap execution facility (Sef), until corresponding requirements came into force in Asia and Europe.

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CFTC Launches Inquiry Into Evasion of Swaps Rules

By Douwe Miedema
Published April 28, 2014 Reuters

The U.S. swaps regulator plans to research whether U.S. banks' overseas trading activity is complying with its rules, a senior official said on Monday, as Wall Street adapts to new rules for the $690 trillion global market.

Scott O'Malia, a Republican member of the Commodity Futures Trading Commission, said he had asked the agency's staff for a legal opinion on whether U.S. banks were possibly evading its rules when doing business in Europe.

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CFTC May Propose Futures Block-Trading Limits, Commissioner Says

By Neil Roland
Published March 27, 2014 mLex

US regulators may revive a futures block-trading plan similar to one drafted last year by Gary Gensler, then chairman of the Commodity Futures Trading Commission.

The CFTC is considering proposing stricter limits on futures block trading than those now being set by futures exchanges, Commissioner Scott O’Malia said. 

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O’Malia: If OTC Market Has Split, Blame Regulators

By Peter Madigan
Published March 20, 2014 Risk

If claims of a regional split in over-the-counter derivatives markets are borne out, the blame will lie with global regulators, according to Commodity Futures Trading Commission (CFTC) commissioner Scott O'Malia.

Speaking on the sidelines of the Futures Industry Association's annual meeting in Florida last week, O'Malia said he is yet to see conclusive proof that foreign counterparties are refusing to trade with US persons in order to avoid the mandatory clearing and execution rules now in force for the latter. A study by the International Swaps and Derivatives Association, published in January, claimed to have found firm evidence to support the long-rumoured phenomenon.

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Swap Dealer Rule Change Could Benefit Buy-Side

By Richard Henderson
Published January 31, 2014 The Trade

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Aite's Stowsky Discusses Pros and Cons for Crash-Proofing the Markets

By Robert Stowsky
Published November 20, 2013 Securities Technology Monitor

At a meeting of the Commodity Futures Trading Commission’s Technical Advisory Committee in September, Commissioner Scott O’Malia posed a question: Should the risk controls developed by the leading futures exchanges be “federalized” into regulations? Industry veteran Cliff Lewis spoke for many, if not most, market participants when he responded, “Don’t do it!”

O’Malia’s question and Lewis’ answer were part of a larger discussion on the CFTC’s “Concept Release on Risk Controls and System Safeguards for Automated Trading Environments.”

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