News Centre

Statement Of CFTC Commissioner Kristin N. Johnson: A Call For The CFTC To Begin A Formal Rulemaking To Address Vertical Integration

Date 19/12/2023

Bitnomial Clearinghouse, LLC (Bitnomial Clearinghouse) seeks to register as a derivatives clearing organization (DCO) pursuant to Section 5b of the Commodity Exchange Act (CEA) and Part 39 of the Commodity Futures Trading Commission’s (Commission or CFTC) regulations (Part 39). Long before the Commission began deliberation on this application, I advocated for the Commission to initiate a rulemaking process directly addressing the concerns arising due to vertically integrated market structures.

CFTC Divisions Issue Staff Advisory On Affiliations Among CFTC-Regulated Entities

Date 19/12/2023

The Commodity Futures Trading Commission’s Divisions of Clearing and Risk, Market Oversight, and Market Participants today issued a staff advisory on affiliations between a designated contract market (DCM), derivatives clearing organization (DCO), or swap execution facility (SEF) and an intermediary, such as a futures commission merchant, or other market participant, such as a trading entity.

Dissenting Statement Of CFTC Commissioner Christy Goldsmith Romero On Rushed Rulemaking Related To FTX’s Direct-To-Retail Market Structure

Date 19/12/2023

This week, the Commission in a split vote, on which I dissented, approved the first proposed rule related to FTX’s bespoke direct-to-retail market structure.  That structure removed the intermediary (known as a futures commission merchant or FCM) where the CFTC’s customer protection and anti-money laundering regimes sit.  I believe that before my tenure, the Commission made a mistake in approving two clearinghouses (LedgerX owned by FTX before FTX’s bankruptcy, and Nadex, which is now Crypto.com) for this direct-to-retail market structure before analyzing and addressing the risks of a lack of AML requirements, customer protections, and other checks and balances.

Statement Of CFTC Commissioner Kristin N. Johnson: Closing A Gap, Preserving Market Integrity And Protecting Clearing Member Funds Held By Derivatives Clearing Organizations

Date 19/12/2023

In the mid-1800s, my family migrated to a small town in the Midwest and founded businesses, acquired real estate and originated small loans to support entrepreneurs and businesses in the community.[1] As is true for all businesses, relationships and trust were key elements in the success of these businesses. Trust is the core issue that motivates today’s notice of proposed rulemaking (Proposed Rule) regarding the protection of clearing member funds held by derivatives clearing organizations (DCOs) advanced by the Division of Clearing and Risk.

Statement Of CFTC Commissioner Christy Goldsmith Romero: Advancing Cyber Resilience To Thwart the Continuously Changing Threat Of Cybercrime And Protect Critical Infrastructure - Proposed Rule On Cyber And Operational Resilience

Date 19/12/2023

Today we have before us our first proposed cyber and operational resilience rule that would apply to swap dealers (including banks) and futures commission merchants (FCMs).  I’m excited to see the proposed rule up for vote today.  I support the rule and thank the staff for their more than one year of hard work.  I also thank all who engaged with us in an extensive collaborative effort.  I also thank Chairman Behnam for entrusting me to help with this rule.

Statement Of CFTC Commissioner Kristin N. Johnson Regarding The CFTC’s Notice Of Proposed Rulemaking On Operational Resilience Program For FCMs, SDs, And MSPs

Date 19/12/2023

Cyberattacks are an ever-increasing threat. The rising cost, frequency, and severity of cyber threats represent one of the most critical issues facing city, state, and federal government authorities, businesses in each sector of our economy, educational and philanthropic institutions, and significant energy and transportation infrastructure, and national security resources.

CFTC Approves Two Proposals And A DCO Application

Date 19/12/2023

The Commodity Futures Trading Commission at its open meeting on December 13 approved the following proposed rules and a DCO application. Additional information on these rulemakings, including statements of the Chairman and the Commissioners, is available here.

Federal Court Enters Order Against Binance And Former CEO, Zhao, Concluding CFTC Enforcement Action - Zhao To Pay $150 Million And Binance To Pay $2.7 Billion To CFTC

Date 18/12/2023

The Commodity Futures Trading Commission today announced the U.S. District Court for the Northern District of Illinois has approved the previously announced settlement and entered a consent order of permanent injunction, civil monetary penalty, and equitable relief against Changpeng Zhao and his companies Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited (together, Binance). In formalizing the settlement initially announced on November 21 [See CFTC Press Release No. 8825-23], the court finds Zhao and Binance violated the Commodity Exchange Act (CEA) and CFTC regulations, imposes a $150 million civil monetary penalty personally against Zhao, and requires Binance to disgorge $1.35 billion of ill-gotten transaction fees and pay a $1.35 billion penalty to the CFTC. The order also obligates Zhao and Binance to make certifications as to the existence, application, and efficacy of Binance’s improved compliance controls, and permanently enjoins them from further violations as charged. [See CFTC Press Release No. 8680-23]

CFTC Swaps Report Update

Date 18/12/2023

CFTC's Weekly Swaps Report has been updated, and is now available: http://www.cftc.gov/MarketReports/SwapsReports/index.htm.

Cboe Canada Announces Planned Unification Of Its Canadian Operations

Date 18/12/2023

• NEO Exchange, MATCHNow, and other related Canadian regulated entities to be formally integrated into one corporate entity
• Effective January 1, 2024, the amalgamation is expected to bring greater efficiencies and enhanced quality of service to customers
• Cboe Canada plans to migrate the existing NEO trading platform to Cboe technology in the first quarter of 2025