WASHINGTON (Reuters) – The U.S. swaps regulator plans to research whether U.S. banks’ overseas trading activity is complying with its rules, a senior official said on Monday, as Wall Street adapts to new rules for the $690 trillion global market.
Scott O’Malia, a Republican member of the Commodity Futures Trading Commision, said he had asked the agency’s staff for a legal opinion on whether U.S. banks were possibly evading its rules when doing business in Europe.
By Karen Freifeld and Douwe Miedema
(Reuters) – The New York attorney general is probing more than half a dozen high-speed trading firms, a person familiar with the matter said on Wednesday, as part of his wide-ranging probe into alleged unfair technology advantages on Wall Street.
Attorney General Eric Schneiderman’s office is seeking information on special relationships between exchanges and so-called dark pools, platforms where large trades take place out of sight of the rest of the market.
WASHINGTON, April 14 (Reuters) – Arcadia Petroleum and
Parnon Energy have entered talks to settle accusations by the
Commodity Futures Trading Commission that they fixed the
physical crude oil market, possibly ending one of its most
highly-publicized oil manipulation cases.
The derivatives regulator in May 2011 sued two well-known
traders, James Dyer of Parnon Energy and Nick Wildgoose of
Arcadia, and their firms for allegedly making $50 million by
squeezing markets in 2008.
WASHINGTON, April 9 (Reuters) – A U.S. congressman on
Wednesday expressed concern to regulators about inflated
aluminum prices as a result of the London Metals Exchange’s
(LME) policies, urging the Commodity Futures Trading Commission
to be tougher on the issue.
“The CFTC acknowledges that they have the authority to
regulate and investigate concerns about the aluminum supply,”
said Virginia Republican Bob Goodlatte, who was speaking at a
meeting of the House Committee on Agriculture.
WASHINGTON, April 9 (Reuters) – Large debt piles at
companies are rendering emerging economies more fragile because
they could quickly transmit trouble to banking systems in a
crisis, the International Monetary Fund said on Wednesday.
Debt at risk of not being repaid by companies that have
already borrowed heavily could increase to $740 billion, or 35
percent of the total, the Fund found in a model test simulating
a severe crisis.
WASHINGTON (Reuters) – A U.S. Senate panel on Tuesday approved Timothy Massad as the next chairman of the Commodity Futures Trading Commission, but a second nominee to the derivatives watchdog hit a snag.
Massad, a lawyer who oversaw the U.S. government’s $700 billion bank bailout program, was nominated by President Barack Obama to replace Gary Gensler. He has spent most of his career at Wall Street law firm Cravath, Swaine & Moore, working on a wide variety of corporate transaction.
WASHINGTON, April 7 (Reuters) – Four U.S. lawmakers launched
a bill on Monday to rewrite the rules of of the Commodity
Futures Trading Commission (CFTC), giving more leeway to smaller
players in the derivative markets it oversees.
The agency became one of the most prolific reformers of Wall
Street after the financial crisis under its previous Chairman
Gary Gensler, who was frequently criticised for his hard-nosed
style and sometimes-hasty adoption of new rules.
WASHINGTON (Reuters) – The U.S. Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, a part of the Dodd-Frank financial law that bans banks from making a range of risky investments.
The Fed said banks will now have until July 21, 2017 to shed these funds, which pool together risky loans.
WASHINGTON (Reuters) – The U.S. Commodity Futures Trading Commission is investigating high-frequency traders to see if they were breaching the derivatives regulator’s rules, its chief said on Thursday.
“Staff (is) responding to concerns brought to us about certain practices, whether it be spoofing just to give one example, whether that’s running afoul of our rule,” Acting Chairman Mark Wetjen told reporters during a meeting.
WASHINGTON, April 3 (Reuters) – The U.S. Commodity Futures
Trading Commission plans to ease its new swaps rules to help
public power utilities using swaps to hedge price risk, the head
of the derivatives regulator said on Thursday.
The agency will propose to make it easier for electricity
and natural gas utilities to continue to use these products
without incurring the cost that comes from tighter new swaps
laws written after the financial crisis.