News Centre

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).

Moscow Exchange: Risk Parameters On Securities Market - Update 1

Date 28/05/2020

CCP NCC changes time interval used for monitoring adequacy of price limits from 5 minutes to 3 minutes for shares, ETFs, depository receipts and mutual funds traded on the Securities market starting from June 8, 2020.

BIS: Payment Holidays In The Age Of Covid: Implications For Loan Valuations, Market Trust And Financial Stability

Date 28/05/2020

Highlights

• Governments and banks have introduced payment deferral programmes to support borrowers affected by Covid-19. But deferred payments are not forgiven and must be repaid in the future, raising prospective risks to the banking system. Thus, they should be designed to balance near-term economic relief benefits with longer-term financial stability considerations.
• The Basel Committee on Banking Supervision (BCBS) and several prudential authorities have issued statements clarifying how payment deferrals should be considered in assessing credit risk under applicable accounting frameworks. These measures aim to encourage banks to continue lending, to avert an even deeper recession.
• Prudential authorities are caught "between a rock and a hard place" as they encourage banks - through various relief measures - to provide credit to solvent, but cash-strapped borrowers, while keeping in mind the longer-term implications of these measures for the health of banks and national banking systems.
• In navigating these tensions, banks and supervisors face a daunting task as borrowers that may be granted payment holidays have varying risk profiles. Distinguishing between illiquid and insolvent borrowers - amidst an uncertain outlook - should help guide banks' efforts to support viable borrowers, while preserving the integrity of their reported financial metrics.

ESMA Updates Its Questions And Answers On The Securitisation Regulation

Date 28/05/2020

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today updated its Questions and Answers on the Securitisation Regulation (Regulation 2017/2402).