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Mar 25, 2014

Market operators hinder CFTC as it seeks to monitor swaps-sources

WASHINGTON, March 26 (Reuters) – Market operators’ failure
to cooperate to provide the Commodity Futures Trading Commission
with adequate data is preventing the regulator from effectively
monitoring the global swaps market, according to sources
familiar with the matter.

They said it means the CFTC, which is the derivatives market
regulator, has yet to meet a major goal it was set after the
credit crisis: to get on top of what is happening in the opaque
$690 trillion market so that it can be confident of preventing
another blowup.

Mar 24, 2014

Tera Exchange announces first Bitcoin derivative

WASHINGTON, March 24 (Reuters) – TeraExchange said on Monday
it had constructed a swap based on the bitcoin virtual currency,
a step that would bring the emerging payment system under the
oversight of U.S. regulators for the first time.

The contract, created on behalf of two clients, was a
bilateral swap privately negotiated between them. The
counterparties had not acted on the agreement, but were expected
to do so soon, the company said.

Mar 21, 2014

U.S. swaps regulator gives EU firms more time to meet rules

WASHINGTON, March 21 (Reuters) – The U.S. derivatives
regulator on Friday gave European trading platforms more time to
register and meet strict new rules to make the market more
transparent, in anticipation of comparable rules abroad.

The delay was issued by the agency in a so-called no-action
letter after an agreement the Commodity Futures Trading
Commission struck with the European Union in February, which
will in practice affect firms in London only.

Mar 20, 2014

U.S. regulator estimates Volcker rule’s cost for banks

WASHINGTON (Reuters) – A U.S. bank regulator on Thursday said the Volcker rule could cost the industry a one-time annual charge of up to $4.3 billion, the first cost estimate by a regulator for the ban on banks betting on markets with their own money.

The rule, which takes its name from former Federal Reserve Chairman Paul Volcker, puts a stop to so-called proprietary trading by banks. It also limits their ability to invest in hedge funds and private equity funds.

Mar 19, 2014

Bitcoin firms explore U.S. rules for derivative exchanges

WASHINGTON, March 19 (Reuters) – Companies have inquired in
the past month about regulations that would govern exchanges for
bitcoin derivatives, a top U.S. regulator said on Wednesday, a
sign such virtual currencies could become a more mainstream
financial product.

Regulators have stepped up their efforts to rein in bitcoin
after incidents such as the collapse of Mt. Gox, a Tokyo-based
exchange that filed for bankruptcy after losing an estimated
$650 million worth of customer bitcoins.

Mar 19, 2014

U.S. swaps regulator seeks help from markets to clean up data

WASHINGTON (Reuters) – The U.S. derivatives regulator on Wednesday asked market participants to answer a long list of questions it hopes will help it cope with a deluge of data on the $630 trillion market it newly regulates.

The Commodity Futures Trading Commission has repeatedly said it is drowning in the flood of data it has started to receive from data warehouses and from clearing houses, and that it cannot adequately monitor risk as a result.

Mar 13, 2014

U.S. swaps regulator plans trading data overhaul

Boca Raton, Fla (Reuters) – The U.S. swaps regulator will outline its plan next week to clean up trading data, a top official said on Thursday, as it struggles to make the market less opaque after the credit crisis.

The Commodity Futures Trading Commission, which was put in charge of the $630 trillion global off-exchange derivatives market after the crisis, may come up with a guidebook, or tweak its rules, one of its members told Reuters.

Mar 5, 2014

Predecessor’s shadow looms over new U.S. swaps regulator

WASHINGTON (Reuters) – Timothy Massad, set to become the top U.S. derivatives regulator, will face a delicate balancing act this week as he lays out the direction he’ll take the agency after the departure of his controversial predecessor.

Gary Gensler, who left the Commodity Futures Trading Commission in January at the end of his term, transformed the watchdog from a relatively sleepy agriculture-focused regulator to a powerful overseer of Wall Street.

Mar 4, 2014

Obama scales back budget request for CFTC, while sparing SEC

WASHINGTON, March 4 (Reuters) – The White House on Tuesday
asked Congress to ramp up funding for the U.S. securities
regulator, but caused an outcry from the top derivatives
regulator by scaling back its prior request for a boost for that
agency.

President Barack Obama proposed a fiscal year 2015 budget
for the Securities and Exchange Commission of $1.7 billion, and
a budget for the Commodity Futures Trading Commission of $280
million. The new fiscal year begins on Oct. 1.

Mar 4, 2014

Mt. Gox collapse could ultimately help bitcoin: New York regulator

WASHINGTON/TOKYO (Reuters) – The collapse of the Mt. Gox bitcoin exchange could ultimately strengthen the virtual currency industry by weeding out weaker operators and prompting more supervision, New York’s banking regulator said on Monday.

Japan’s government, however, said it was still trying to figure out how the Tokyo-based company, once the world’s biggest bitcoin exchange, could lose nearly half a billion dollars worth of the virtual currency in a short period, and whether crime was involved.

    • About Douwe

      "I head up the Financial Services team in London. We're 20 journalists, covering M&A, IPOs, restructuring, banking, real estate, investment management, hedge funds and private equity. I've worked for Reuters in Zurich, Frankfurt and Amsterdam."
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