News Centre

Statement Of Dissent By CFTC Commissioner Rostin Behnam - Capital Requirements Of Swap Dealers And Major Swap Participants: Proposed Rule; Reopening Of Comment Period; Request For Additional Comment

Date 10/12/2019

I respectfully dissent from the Commodity Futures Trading Commission’s (the “Commission” or “CFTC”) decision today to reopen the comment period and request additional comment on proposed regulations and amendments to implement section 731 of the Wall Street Reform and Consumer Protection Act,[1] which requires the CFTC to establish capital rules for all registered swap dealers (“SDs”) and major swap participants (“MSPs”) that are not banks, including nonbank subsidiaries of bank holding companies, as well as associated financial recordkeeping and reporting requirements (the “Reopening”).  While I would have been comfortable supporting the Reopening as a matter of moving this critical Dodd-Frank Act rule forward to finalization, to the extent it introduces supplementary avenues for future rulemaking such as a leverage ratio requirement, it is a deception.  Impulsively inviting comment on matters tangential to the 2016 Capital Proposal[2], but perhaps relevant to determining appropriate capital standards and methodologies, as opposed to a thoughtful re-proposal sacrifices discipline for expediency, and runs afoul of proper process for notice and comment.  I will not be complicit in supporting Commission action that I believe could invite backdoor rationalization when finalization is before us.  The public deserves--and our integrity demands--that we play by the rules.

ISDA Letter To US Prudential Regulators On Revised Margin Requirements

Date 10/12/2019

On December 9, 2019, ISDA responded to the Notice of Proposed Rulemaking and Request for Comments regarding Margin and Capital Requirements for Covered Swap Entities issued by the US prudential regulators.  The proposed rulemaking extends the phase-in period for initial margin, preserves the legacy status for swaps amended due to the IBOR transition and certain post-trade events, and removes the obligation for affiliates to exchange initial margin.

Opening Statement Of CFTC Commissioner Brian Quintenz Before The Open Commission Meeting

Date 10/12/2019

Good morning. Mr. Chairman, thank you for calling this meeting.  I support all three rulemakings before the Commission today.

Proposed Rule: Capital Requirements for Swap Dealers and Major Swap Participants – Reopening the Comment Period and Requesting Additional Comment

US Justice Department Announces Deferred Prosecution Agreement With HSBC Private Bank (Suisse) SA - Bank Admits To Helping U.S. Taxpayers Conceal Income And Assets From The United States; Agrees To Pay $192.35 Million Penalty

Date 10/12/2019

HSBC Private Bank (Suisse) SA (HSBC Switzerland), a private bank headquartered in Geneva, has entered into a deferred prosecution agreement (DPA) with the Department of Justice today in the U.S. District Court for the Southern District of Florida, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division, United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, and Chief Don Fort for Internal Revenue Service (IRS), Criminal Investigation. HSBC Switzerland admitted to conspiring with U.S. taxpayers to evade taxes and, as part of the agreement, HSBC Switzerland will pay $192.35 million in penalties.

CFTC Approves One Final, Two Proposed Rules At December 10 Open Meeting

Date 10/12/2019

At an open meeting today, the U.S. Commodity Futures Trading Commission approved one final rule and two proposed rules.

New York Attorney General Letitia James' Statement On ExxonMobil Ruling

Date 10/12/2019

New York Attorney General Letitia James released the following statement after a ruling was rendered in the case of People of the State of New York v. ExxonMobil Corporation:

“As Rex Tillerson admitted at trial, all investors are entitled to the truth. For the first time in history, ExxonMobil was compelled to answer publicly for their internal decisions that misled investors. The oil giant never took seriously the severe economic impact that climate change regulations would have on the company, contrary to what they were telling the public. Throughout this case, we laid out how Exxon made materially false, misleading, and confusing representations to the American people about the company’s response to climate change regulations. Exxon’s inability to tell the truth further underscores the lies that have been sold to the American public for decades. Despite this decision, we will continue to fight to ensure companies are held responsible for actions that undermine and jeopardize the financial health and safety of Americans across our country, and we will continue to fight to end climate change.”

More Than Half Of Canadians Surveyed Who Don't Invest Say It's Because They Lack Knowledge And Confidence - IIROC Research Uncovers Barriers To Advice

Date 10/12/2019

Canadians who do not currently invest say their lack of knowledge and confidence are preventing them from getting financial information and advice, according to national survey results from the Investment Industry Regulatory Organization of Canada (IIROC).

SIFMA Statement On USMCA Trade Agreement

Date 10/12/2019

SIFMA today released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, commending the agreement to proceed on the United States, Mexico and Canada Agreement (USMCA) and strongly supporting its adoption:

“USMCA includes a robust financial services chapter updating the existing language in the North American Free Trade Agreement. SIFMA and its members are now eager to see the necessary legislation introduced, passed and implemented. For the first time in any U.S. trade agreement, USMCA includes a prohibition on forced data localization while ensuring regulators maintain the necessary access. We strongly support this outcome and believe it should be replicated in future trade agreements beyond USMCA.”

Statement Of CFTC Commissioner Dan M. Berkovitz On Proposed Rule To Make Permanent Certain Anti-Evasion Measures For Inter-Affiliate Swaps

Date 10/12/2019

I support the proposed rule to make permanent the alternative compliance frameworks for certain swaps between the foreign affiliates of U.S. firms and their non-U.S. counterparties.  The proposed rule would make permanent, with modifications, anti-evasion provisions for inter-affiliate swaps that the Commission originally adopted in 2013, and then extended through staff no-action letters that remain in effect today.  The no-action letters require U.S. firms and their foreign affiliates to exchange variation margin in connection with swaps entered into by the foreign affiliate with non-U.S. counterparties, where such swaps are subject to the Commission’s clearing requirement and there is no comparable and comprehensive clearing regime in the foreign jurisdiction.  The proposed rule upholds the Dodd-Frank Act’s clearing mandate, deters evasion, and helps to protect against systemic risk to the U.S. from swaps executed overseas by foreign affiliates. 

Remarks Given At A Panel To Launch The Third Annual America’s Pledge Report, At The 25th Annual Conference Of The Parties - Mark Carney, Governor, Bank Of England, Given At The US Climate Action Centre, Madrid

Date 10/12/2019

Remarks given at a panel to launch the third annual America’s Pledge report, at the 25th Annual Conference of the Parties