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Dissenting Statement Of CFTC Commissioner Dan M. Berkovitz On Volcker Rule Amendments – Final Rule

Date 16/09/2019

Congress adopted the statute commonly known as the “Volcker Rule” in the wake of the 2008 financial crisis to prevent banks that benefit from federal depository insurance or other government support from taking excessive risks that could lead to future taxpayer bailouts.  The Volcker Rule prohibits proprietary trading and the owning of hedge funds and private equity funds by banks and their subsidiaries (“banking entities”), with certain exceptions and exemptions.  In 2013 the Commission and other financial regulators adopted regulations to implement the Volcker Rule.  The final rule before the Commission today (“revised Volcker Rule”) substantially weakens these implementing regulations.

Reflections On Monetary Policy - Keynote Speech By Philip R. Lane, Member Of The Executive Board Of The ECB, At Bloomberg, London, 16 September 2019

Date 16/09/2019

I will divide this speech into two parts. First, I wish to review the current economic and financial environment. Second, I will discuss the monetary policy decisions taken by the Governing Council in last week’s meeting.[1]

Statement Of CFTC Commissioner Dawn D. Stump For CFTC Open Meeting On September 16, 2019 - Open Meeting On: 1) Final Rule On Position Limits And Position Accountability For Security Futures Products; And 2) Proposed Rule On Public Rulemaking Procedures (Part 13 Amendments)

Date 16/09/2019

Overview                                             

In my Opening Statement at my first Open Meeting last November, I noted the directive in the Leaders’ Statement from the 2009 G-20 Summit in Pittsburgh that member nations “assess regulatory implementation” of the new rules that would be adopted in response to the financial crisis of 2008.  I believe that as a matter of sound regulation, we should undertake this same type of look-back for all our rules.  It is simply good government to re-visit our rules and assess whether certain rules need to be updated, evaluate whether rules are achieving their objectives, and identify rules that are falling short and should be withdrawn or improved.

Statement By The European Commission Following The Working Lunch Between President Jean-Claude Juncker And Prime Minister Boris Johnson

Date 16/09/2019

President Jean-Claude Juncker and Prime Minister Johnson had a working lunch today in Luxembourg. The aim of the meeting was to take stock of the ongoing technical talks between the EU and the UK and to discuss the next steps.

Concurring Statement Of CFTC Commissioner Rostin Behnam Regarding The Proposed Rule On Public Rulemaking Procedures

Date 16/09/2019

I respectfully concur with the Commodity Futures Trading Commission’s (the “Commission” or “CFTC”) proposal to amend part 13 of the Commission’s Regulations (the “Proposal”).  The Proposal aims to succinctly and unambiguously confirm that the Commission’s rulemaking process is governed by the Administrative Procedure Act (“APA”).

BIS: Triennial Central Bank Survey Of Foreign Exchange And Over-The-counter (OTC) Derivatives Markets In 2019

Date 16/09/2019

The results of the 2019 Triennial Survey are summarised in commentaries about foreign exchange turnover and interest rate turnover. Detailed analyses will be published in the December 2019 issue of the BIS Quarterly Review.

Dissenting Statement Of CFTC Commissioner Rostin Behnam Regarding Amendments To The Volcker Rule

Date 16/09/2019

I respectfully dissent as to the Commission’s decision to approve revisions to the Volcker Rule.  In June 2018, when I voted against the proposed rule, I expressed that my biggest concern was that our action would encourage a return to the risky activities that led to the financial crisis, and perhaps further consolidate trading activity into a few institutions.[1]  My concern last June was that we were weakening the Volcker Rule around the edges, and I raised specific issues regarding unnecessary complexity, lack of clarity, and a flawed process that chilled dissent.  Unfortunately, today’s final rule does not do anything to assuage these concerns.  To make matters worse, while the proposal merely threatened to kill Volcker through a thousand little cuts, the final rule goes for the throat.  It significantly weakens the prohibition on proprietary trading by narrowing the scope of financial instruments subject to the Volcker Rule.   What remains is so watered down that it leaves one questioning whether it should be called the Volcker rule at all.  To that point, Paul Volcker himself recently sent a letter to the Chairman of the Federal Reserve criticizing the rule and stating that the rule “amplifies risk in the financial system, increases moral hazard and erodes protections against conflicts of interest that were so glaringly on display during the last crisis.”[2]

US Department Of Justice: Current And Former Precious Metals Traders Charged With Multi-Year Market Manipulation Racketeering Conspiracy

Date 16/09/2019

Two current precious metals traders and one former trader in the New York offices of a U.S. bank (Bank A) were charged in an indictment unsealed today for their alleged participation in a racketeering conspiracy and other federal crimes in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences.

Opening Statement Of CFTC Commissioner Brian Quintenz Before The Open Commission Meeting On September 16, 2019 - Open Meeting On Final Rule On Position Limits And Position Accountability For Security Futures Products And Proposed Rule On Public Rulemaking Procedures (Part 13 Amendments)

Date 16/09/2019

Mr. Chairman, thank you for calling this meeting.  I am pleased to support today’s proposals, which are both examples of good government.

FINRA Fines J.P. Morgan Securities LLC, $1.1 Million For Failing To Timely Disclose 89 Allegations Of Misconduct Over A Six-Year Period - Prevented Numerous Regulatory Investigations; Prevented Other Member Firms And Public From Learning About Allegations Including Misappropriation Of Funds

Date 16/09/2019

FINRA today announced it has censured and fined J.P. Morgan Securities LLC (JPMS) $1.1 million for failing to timely disclose 89 internal reviews or allegations of misconduct by its registered representatives and associated persons spanning a six-year period. FINRA also required an undertaking by the firm to certify within 60 days that it has taken appropriate corrective measures.