News Centre

Statement Of CFTC Chairman Heath P. Tarbert In Support Of Extending The Phase 5 Initial Margin Compliance Deadline

Date 28/05/2020

If there were no uncertainty, there would be no derivatives markets. Indeed, the CFTC is in the business of regulating markets that enable market participants to hedge their risks. But there are some exogenous events that come but once a century—a so-called Black Swan—which even prudent risk management can neither foresee nor adequately prepare for. The United States and much of the world is now facing such an event in the form of the COVID-19 (coronavirus) pandemic.

Statement Of CFTC Commissioner Dan M. Berkovitz On Proposed Amendments To Registration Requirements For Certain Foreign Persons Acting As Commodity Pool Operators Of Offshore Commodity Pools

Date 28/05/2020

Introduction

I support the proposal to amend regulation 3.10(c)(3) addressing the exemption from registration for foreign persons who operate commodity pools for customers located outside of the United States (“Proposal”).  The Commission should focus its limited resources on commodity pools in which U.S. persons participate, rather than commodity pools located outside the U.S. in which only non-U.S. persons participate.  The Proposal addresses several specific scenarios in which the registration exemption would apply, and which previously created potential uncertainty for market participants.

Statement Of CFTC Commissioner Dawn D. Stump Regarding Amending Rule 3.10(C)(3) –Exemption From Registration For Foreign Persons Acting As Commodity Pool Operators On Behalf Of Offshore Commodity Pools

Date 28/05/2020

Overview

I am pleased to support the proposal before us today to amend Rule 3.10(c)(3) in order to clarify that a non-US person does not have to register as a commodity pool operator (“CPO”) with respect to its operation of offshore commodity pools for non-US participants that trade in US derivatives markets, even if that CPO also operates other commodity pools with US participants for which it is registered (or claims another exclusion or exemption from registration).  The proposal addresses an important issue, and arises from comments on a different proposed rulemaking that we issued back in October 2018.

Statement Of CFTC Commissioner Rostin Behnam Regarding Notice Of Proposed Rulemaking Regarding An Exemption From Registration For Certain Foreign Persons Acting As Commodity Pool Operators Of Offshore Commodity Pools And Reopening Of Comment Period

Date 28/05/2020

I will support today’s notice of proposed rulemaking and reopening of a comment period primarily aimed at amending the conditions of the current exemption under Commission regulation 3.10(c)(3) (referred to as the “3.10 Exemption”) available to certain non-U.S. commodity pool operators (CPOs) to further reflect the increasingly global nature of the CPO space and clarify the Commission’s approach with respect to its oversight of foreign intermediaries that are not engaged in commodity interest activities on behalf of U.S. customers.  I greatly appreciate the time and consideration that the staff of the Division of Swap Dealer and Intermediary Oversight (DSIO) gave to my comments and concerns.  I also wish to thank the Office of General Counsel (OGC) staff for ensuring that we consistently adhere to the letter and spirit of the Commodity Exchange Act (CEA or the “Act”) and regulations.  I am pleased that the ongoing dialog that has become a hallmark of many working relationships within the Commission is enduring better than ever through the pandemic, and that we can advance important policy and regulatory initiatives without sacrificing constructive debate and deliberation.

Statement Of Support By CFTC Commissioner Brian Quintenz Regarding The Exemption From Registration For Certain Foreign Persons Acting As Commodity Pool Operators Of Offshore Commodity Pools – Notice Of Proposed Rulemaking

Date 28/05/2020

I am pleased to support today’s proposal to amend the Commission’s regulation providing an exemption from registration for a foreign commodity pool operator trading on U.S. markets on behalf of foreign investors.[1]  Building on previously granted staff no-action relief, the proposal would create new possibilities for fund managers and provide for simplified compliance.  At the same time, the proposal ensures that the Commodity Exchange Act continues to protect U.S. market participants.  Like the Commission’s proposal from January addressing its jurisdiction over foreign swap dealing activities,[2] this rulemaking sensibly marks the boundaries of the Commission’s reach into foreign derivatives trading activities in light of market realities.  And like the proposal from earlier this year amending the Commission’s regulations governing commodity broker bankruptcies,[3] in this rulemaking the Commission staff applies their experience to make the Commission’s regulations more efficient. 

Statement Of CFTC Chairman Heath P. Tarbert In Support Of Amending The Registration Exemption For Foreign CPOs

Date 28/05/2020

In his second inaugural address in 1893, President Grover Cleveland remarked that “[u]nder our scheme of government the waste of public money is a crime against the citizen.” The CFTC is a taxpayer-funded agency, and Congress expects us to deploy our resources to serve the needs of American taxpayers.  That is why as Chairman and Chief Executive, I have sought to revisit our agency’s regulations where there does not appear to be a clear connection to furthering the interests of the United States or our citizens.

Moscow Exchange: Risk Parameters For New Bonds

Date 28/05/2020

New bonds will be accepted to margin trading starting from 29.05.2020. From this date on, the following risk parameters will be applied:

Opening Statement Of CFTC Chairman Heath P. Tarbert Regarding The CFTC’s Further Response To The Coronavirus Pandemic

Date 28/05/2020

Over the past few months, the CFTC has been focused on responding to the tremendous impact of the coronavirus on the markets we regulate.  I would like to highlight some of the additional steps the agency has taken since our last open meeting in April to help address the spread of the coronavirus and its impact on the derivatives markets.

MIAX Options and MIAX PEARL Options - Announce Support for Additional MEI and MEO Limited Service Ports

Date 28/05/2020

The MIAX Options and MIAX PEARL Options Exchanges propose, pending filing with the SEC, to offer to Market Makers the ability to purchase an additional two (2) Limited Service MIAX Express Interface (MEI) and MIAX Express Order (MEO) Ports per matching engine.  The two additional Limited Service Ports will be available in conjunction with the two additional shared segment ULL switches which were previously announced in the May 19, 2020 Alert.  These will be over and above the current six (6) additional Limited Service MEI/MEO Ports per matching engine that are currently available for purchase by Market Makers.  Market Makers will now be limited to purchasing eight (8) additional Limited Service MEI/MEO Ports per matching engine, for a maximum of ten (10) per matching engine. 

ESMA Publishes Updates To EMIR Q&As

Date 28/05/2020

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today updated its Questions and Answers document on practical questions regarding data reporting issues, under the European Markets Infrastructure Regulation (EMIR).