News Centre

Statement Of CFTC Commissioner Dawn D. Stump Regarding Final Rule Prohibiting Exemptions Under Rule 4.13 On Behalf Of Persons With Certain Statutory Disqualifications

Date 04/06/2020

One of the great strengths of our derivatives markets – today, just as in the past – is their dynamic nature.  These markets are constantly, and often rapidly, evolving in terms of the scope of products traded, the platforms on which those products are traded, and the participants that trade them.  As a result, “one-size-fits-all” rules often turn out not to be a “good fit” at all.

Nasdaq Stockholm Orders Hitech & Development Wireless Sweden Holding AB To Pay A Fine Corresponding To Eight Annual Fees

Date 04/06/2020

The Disciplinary Committee of Nasdaq Stockholm has found that Hitech & Development Wireless Sweden Holding AB (publ) (“HDW” or the “Company”) has breached the Nasdaq First North Growth Market Rulebook (the “Rulebook”) and has therefore ordered the Company to pay a fine of eight annual fees, corresponding to an amount of SEK 800 000.

Statement Of Commissioner Rostin Behnam Regarding Amendments To Registration And Compliance Requirements For CPOs And CTAs: Prohibiting Exemptions Under Regulation 4.13 On Behalf Of Persons Subject To Certain Statutory Disqualifications

Date 04/06/2020

I support today’s adoption of a final rule (the “Final Rule”) requiring any person that files with the CFTC a notice claiming an exemption from registration as a commodity pool operator (“CPO”) under Regulation 4.13 of the Commodity Exchange Act (“CEA” or the “Act”) to affirmatively represent that neither the claimant nor any of the CPO’s principals has in its background any statutory disqualifications listed in section 8a(2) of the CEA, which are required to be disclosed as a part of a CPO registration application with the Commission.  Beyond closing a regulatory gap that allows certain persons that would generally fail to meet the CEA’s basic conduct requirements to nevertheless claim an exemption from CPO registration, the Final Rule invigorates the Commission’s stance as an active regulator with respect to the most diverse registration category within our jurisdiction.  As I have said before, CPOs (and commodity trading advisors or “CTAs”) are often identifiable by variable organizational structures, investment focus, participation, and solicitation, as well as complexity in how they are regulated within our authority.[1]  These factors demand that when we act, we do so with a laser focus on customer protections.  I am pleased that this Final Rule aggressively advances customer protection in a tangible way.   

EBA Publishes Opinion On Obstacles To The Provision Of Third Party Provider Services Under The Payment Services Directive

Date 04/06/2020

The European Banking Authority (EBA) published today an Opinion on obstacles to the provision of third party provider services (TPPs) under the Regulatory Technical Standards (RTS) on strong customer authentication (SCA) and common and secure communication (CSC). The Opinion aims to support the objectives of the revised Payment Services Directive (PSD2) of enabling customers to use new and innovative payment services offered by TPPs by addressing a number of issues regarding the interfaces provided by account servicing payment service providers (ASPSPs) to TPPs.

Statement Of Support By CFTC Commissioner Brian Quintenz Regarding Amendments Prohibiting CPO Exemptions Under Regulation 4.13 On Behalf Of Persons Subject To Certain Statutory Disqualifications – Final Rule

Date 04/06/2020

I am pleased to support today’s final rule amending the procedures for certain commodity pool operators (CPOs) to claim an exemption from registration.  It is sound policy to prevent a firm from claiming a registration exemption if the entity or its principals are “statutorily disqualified” under section 8a(2) of the Commodity Exchange Act, when the same disqualification would prevent them from registering with the Commission.  The disqualification applicable under today’s amendment covers some of the most serious offenses under the Act, including fraud.  While an exempt CPO is more limited in its activities than a registered CPO, for example, no pool has more than 15 participants or the CPO’s commodity interest activity must remain below certain initial margin and notional amount thresholds, an exempt CPO still manages money for the public.  I therefore agree with today’s amendment that the firm should be held to one of the most fundamental customer protection standards under the Commodity Exchange Act.

BIS: Debt De-risking

Date 04/06/2020

Focus

We examine how corporate bond fund managers manipulate the risk of their portfolios in response to competitive pressure. How bond funds react to the pressures of competition and investor redemptions is important, given the sector's strong growth over the past few years. Corporate bond funds also matter from the standpoint of financial stability, because the funds allow their shareholders to pull out their money any time, even if the underlying assets are difficult for the asset manager to sell quickly. Market turbulence can ensue if managers are forced to sell off illiquid assets in so-called fire sales.

Cloud9 Completes $17.5M Series B Funding Round Led By Strategic Investment From UBS - Support By Global Banking Powerhouses Highlights Demand For ‘Virtual Trading Floor’ Tools To Ensure Workflow Efficiency During COVID-19

Date 04/06/2020

Cloud9 Technologies ("Cloud9"), a leader in cloud-based communications, has completed a $17.5 million Series B funding round led by a strategic investment from UBS, with participation from existing investors including J.P. Morgan and Barclays.  Agility, mobility, and resilience have come into sharp focus at financial institutions, accelerating demand for flexible remote working tools on and off the trading floor and increasing the adoption of the industry’s only fully cloud-based voice communications solution.

Statement Of CFTC Commissioner Rostin Behnam Regarding Amendments To Registration And Compliance Requirements For Cpos And Ctas: Prohibiting Exemptions Under Regulation 4.13 On Behalf Of Persons Subject To Certain Statutory Disqualifications

Date 04/06/2020

I support today’s adoption of a final rule (the “Final Rule”) requiring any person that files with the CFTC a notice claiming an exemption from registration as a commodity pool operator (“CPO”) under Regulation 4.13 of the Commodity Exchange Act (“CEA” or the “Act”) to affirmatively represent that neither the claimant nor any of the CPO’s principals has in its background any statutory disqualifications listed in section 8a(2) of the CEA, which are required to be disclosed as a part of a CPO registration application with the Commission.  Beyond closing a regulatory gap that allows certain persons that would generally fail to meet the CEA’s basic conduct requirements to nevertheless claim an exemption from CPO registration, the Final Rule invigorates the Commission’s stance as an active regulator with respect to the most diverse registration category within our jurisdiction.  As I have said before, CPOs (and commodity trading advisors or “CTAs”) are often identifiable by variable organizational structures, investment focus, participation, and solicitation, as well as complexity in how they are regulated within our authority.[1]  These factors demand that when we act, we do so with a laser focus on customer protections.  I am pleased that this Final Rule aggressively advances customer protection in a tangible way.   

EBA Launches Consultation On Technical Standards On Capital Requirements Of Non-Modellable Risks Under The FRTB

Date 04/06/2020

The European Banking Authority (EBA) launched a consultation on draft Regulatory Technical Standards (RTS) on the capitalisation of non-modellable risk factors (NMRFs) for institutions using the new Internal Model Approach (IMA) under the FRTB (Fundamental Review of the Trading Book). These draft RTS are one of the key deliverables included in the roadmap for the new market and counterparty credit risk approaches published on 27 June 2019. The consultation runs until 4 September 2020.

Statement Of CFTC Chairman Heath P. Tarbert In Support Of Final Rule Preventing Bad Actors From Relying On CPO Exemptions

Date 04/06/2020

As Robert Louis Stevenson aptly put it, “Everybody, sooner or later, sits down to a banquet of consequences.”

Today we are focused on the consequences of bad acts that result in “statutory disqualification” under the Commodity Exchange Act (“CEA”).  These acts include the most serious types of financial crimes, such as embezzlement, theft, extortion, fraud, misappropriation, and bribery.  Once an individual is statutorily disqualified, the CFTC may deny or revoke his or her registration. The same is true for corporate entities.