News Centre

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.

NICE Actimize To Acquire Guardian Analytics, Expanding AI Cloud Solutions For Financial Crime Risk Management Across All Market Segments - Acquisition Revolutionizes Financial Crime Risk Management, Introducing The Market’s Most Comprehensive Cloud Platform With Best-In-Class Machine Learning And Analytics For Financial Services Organizations Of All Sizes

Date 04/06/2020

Financial services organizations of all sizes must remain one step ahead of financial crime. To enable this NICE Actimize (Nasdaq: NICE)  a leader in Autonomous Financial Crime Management, announces that it has entered a definitive agreement to acquire Guardian Analytics, a leading AI cloud-based financial crime risk management solution provider. Financial services organizations of all sizes rely on Guardian Analytics’ sophisticated real-time behavioral analytics and machine learning solutions. Powered by the cloud, Guardian Analytics simplifies deployments and ongoing operations, optimizing operational resource efficiency. The unique combination of NICE Actimize and Guardian Analytics’ fraud and anti-money laundering capabilities will empower firms of all sizes to accelerate the adoption of the industry’s most innovative solutions, to best protect their assets and customers.

EEX Group - Monthly Report May 2020

Date 04/06/2020

Key achievements in May

Power

• The growth of the Power Spot market was mostly driven by the Intraday market, which grew by 12% year-on-year to 8.4 TWh. Also, the Belgian intraday market hit a new record with 256,563 MWh traded over the last month (previous record: 224,127 MWh in March 2020). May was also marked by the successful launch of Intraday markets in the Nordic region by EPEX Spot and ECC. Launched on 26th May, these markets already reported 18,772 MWh at the end of the month.

CryptoCompare Analysis: Institutional Options Volumes Hit Record Levels In May

Date 04/06/2020

As investors around the globe look for exposure to safe-haven assets, Bitcoin seems to be proving an attractive choice for institutional investors. May saw volumes on regulated platform CME soar, recovering substantially from a lull in April. 

The FCA's Response To COVID-19 And Expectations For 2020 - Speech By Megan Butler, Executive Director Of Supervision – Investment, Wholesale And Specialists At The FCA, Delivered at PIMFA’s Virtual Festival

Date 04/06/2020

Highlights:

• In operational terms, advisors and wealth managers responded well to the onset of the coronavirus (Covid-19) crisis.
• Whilst acting with speed has been the absolute priority, as the industry adapts to the long-term impact of coronavirus, there is a need to transition from the immediate ‘incident response’ towards focusing on longer-term impacts. In her speech to PIMFA’s members, Megan Butler explores the FCA’s priorities and longer-term expectations for the wealth management and advice industry.
• Key areas of focus for the FCA include operational resilience in light of coronavirus, financial resilience (and within that the preservation of client assets and money) and acting with integrity.
• On the latter, the FCA has identified some firms which have tried to avoid their liabilities to customers by closing down companies and setting up new ones. These practices are unacceptable, and the FCA will continue to take action against firms conducting such activities.