Agricultural/Financial correspondent
Christopher's Feed
Oct 19, 2010
via Tales from the Trail

Think brussels sprouts and cauliflower are agricultural commodities? Think again.

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While the financial bailouts tossed to automakers, banks and other groups during the recent economic crisis left a funny taste in the mouth of some Americans, one former U.S. regulator hopes efforts to prevent another panic doesn’t go rotten.

The U.S. Commodity Futures Trading Commission is immersed in drafting dozens of rules to assist it in increasing oversight of the once opaque over-the-counter derivatives market, widely blamed for exacerbating the recent financial crisis.

Oct 19, 2010

CFTC ramps up collection of large trader swap data

WASHINGTON (Reuters) – Clearinghouses, their members and swap dealers will have to report large swaps positions in 46 commodities to the U.S. futures regulator every day six to 10 months from now in a plan unveiled on Tuesday.

The Commodity Futures Trading Commission said about 180 trading firms and swap dealers and five clearinghouses likely will need to report positions, an effort to help the agency police position limits for speculative trades as part of the sweeping new Wall Street reform law.

Oct 14, 2010

Traders should be liable for rogue algos: O’Malia

WASHINGTON (Reuters) – U.S. regulators should be able to hold traders responsible for algorithms that cause harm to markets, an official of the Commodity Futures Trading Commission said on Thursday.

Scott O’Malia, a CFTC commissioner, said currently it can be difficult for the agency to police “computer-generated violations” because it has to prove traders intended to harm markets.

Oct 12, 2010

U.S. may see 100 new swap execution entities: broker

WASHINGTON (Reuters) – The U.S. futures regulator may have underestimated the number of new entities that will register to trade or execute swaps under new Wall Street reforms, an industry official said on Tuesday.

Gary Gensler, the head of the Commodity Futures Trading Commission, initially estimated last month that 20 to 30 new entities could register as swap execution facilities, or SEFs, but has since upped his estimate to 40.

Oct 11, 2010

Redskins renaissance taking hold after futile stretch

LANDOVER, Maryland (Reuters) – The Washington Redskins started the 2010 NFL season like so many before in recent years: a new coach, a high-profile acquisition, and promises of returning the franchise to their winning ways.

But now, after winning successive games for the first time since 2008 and moving into a tie atop the NFC East, it appears those promises may finally be turning into reality.

Oct 5, 2010

EU, US on same page on derivatives reform -official

WASHINGTON, Oct 5 (Reuters) – The European and U.S.
regulators are on the same path toward increasing oversight of
the over-the-counter derivatives market, leaving little room
for investors to exploit the differences, a top European
Commission regulatory official said on Tuesday.

“There are a lot of people out there who try to make a
living out of finding differences in our regulatory approach,
and I agree with the (CFTC) commissioners that the one thing we
can not afford is a different regulatory outcome,” Patrick
Pearson, head of financial markets infrastructure at the
European Commission, told the U.S. futures regulator.

Oct 5, 2010

Gensler – flash crash panel should review brokers

WASHINGTON (Reuters) – The head of the U.S. Commodity Futures Trading Commission urged a regulatory panel to make recommendations, including on price and volume limits for brokered trades, in the wake of the May 6 “flash crash” that has cast doubt on the efficiency of the market.

CFTC Chairman Gary Gensler outlined possible remedies, including expanding the visibility of the order book, or the bid/ask offers that are made public; and reviewing when and under what conditions market halts are put in place.

Oct 4, 2010

Flash crash panel should review brokers: Gensler

WASHINGTON (Reuters) – The head of the U.S. Commodity Futures Trading Commission on Monday urged a regulatory panel to consider making recommendations on price and volume limits for brokered trades.

Gary Gensler, the chairman of the CFTC, said a commission of experts that will advise the Securities and Exchange Commission and the CFTC should consider new obligations for brokers to avoid trades from clients that could disrupt the market — such as a large order on May 6 which helped spark the stock market flash crash.

Oct 1, 2010

CFTC begins overhaul of swaps market

WASHINGTON (Reuters) – The futures regulator proposed new limits on Friday on the control banks and other large firms can exert over venues where over-the-counter swaps will soon have to trade and clear.

The Commodity Futures Trading Commission, rolling out some of the sweeping Wall Street reforms authorized by Congress, is trying to strike a tricky balance between opening up the opaque $615 trillion OTC swaps market without exposing clearinghouses, exchanges and swap execution facilities to undue risk.

Oct 1, 2010

CFTC wants caps on exchange, clearinghouse control

WASHINGTON, Oct 1 (Reuters) – The U.S. Commodity Futures Trading
Commission on Friday proposed caps on voting ownership in clearinghouses
and venues for trading swaps as the regulator introduced the first in a
series of rules designed to clamp down on the once-unregulated
over-the-counter market.

The CFTC, in its first extensive roll-out of measures to implement the
Wall Street reform bill, proposed three rules, including a 20-percent cap
on voting stakes in clearinghouses, exchanges and swap execution
facilities.

    • About Christopher

      "Currently based in Washington, Christopher reports on agriculture in Congress and the U.S. Agriculture Department. He also is actively involved in covering regulatory reform, with a focus on the U.S. Commodity Futures Trading Commission."
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