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Nov 6, 2013

U.S. speed-trader Don Wilson and firm charged with price rigging

WASHINGTON (Reuters) – A Chicago speed-trading firm and its prominent founder were charged with manipulating prices by the U.S. derivatives regulator on Wednesday.

The Commodity Futures Trading Commission filed a civil enforcement action against Donald R. Wilson and DRW Investments – named after him – for manipulating the price of an interest rate futures contract in 2011, the agency said.

Nov 5, 2013

CFTC anti-speculation plan may not be so tough, data shows

CHICAGO/WASHINGTON (Reuters) – A new plan to curb commodity speculation could prove to be far less rigorous than feared by markets, data provided by the world’s largest futures exchange the CME Group Inc showed.

Under a proposal by the Commodity Futures Trading Commission, the maximum position traders would be allowed to hold in derivatives could dramatically rise rather than tighten sharply, the numbers showed.

Nov 5, 2013

U.S. regulator revives plan to limit excessive commodity bets

WASHINGTON, Nov 5 (Reuters) – The U.S. derivatives regulator
on Tuesday reintroduced a plan to curb commodity market
speculation, reviving a crucial Wall Street reform after a judge
knocked down an earlier version of its rule on position limits.

The redrafted rule by the Commodity Futures Trading
Commission appears to ease one major irritant for big banks by
lowering the threshold for aggregating trading positions held by
part-owned affiliates. But it threatens to create a new rift
with commodity merchants looking to hedge certain transactions,
such as rent on grain storage facilities.

Nov 5, 2013

Swap watchdog launches new commodity position rules

WASHINGTON (Reuters) – The derivatives regulator on Tuesday launched a plan to curb commodity market speculation, reviving a crucial Wall Street reform after a judge knocked down an earlier version of its rule on position limits.

The redrafted rule by the Commodity Futures Trading Commission will allow exemptions for positions held by firms in which banks own stakes of up to 50 percent, the agency said in documents prepared ahead of a public vote.

Nov 1, 2013

U.S. Fed sets tough tests in annual bank health war games

WASHINGTON, Nov 1 (Reuters) – Banks in the United States
will have to test whether they can survive a halving of the
stock market during a severe U.S. recession, the Federal Reserve
said on Friday, as it set the rules for next year’s model runs
to gauge the health of the financial system.

Eight large U.S. banks must also test for the first time
whether they can cope with the hypothetical default of their
largest trading partner, the Fed said in documents laying out
the so-called “stress tests”.

Oct 30, 2013

US House votes to tweak Dodd-Frank in bank victory

WASHINGTON, Oct 30 (Reuters) – The U.S. House of
Representatives voted on Wednesday to scale back a much-debated
provision of the Dodd-Frank Wall Street reform law, handing bank
lobbyists a token victory in their fight against the tougher
rules.

Big banks and their allies in Congress have been pushing to
undo part of the law that calls for walling off risky
derivatives trading by investment banks from government
backstops such as deposit insurance. They say the rule is
unnecessary and would be expensive for banks.

Oct 30, 2013

U.S. regulator says vote on Volcker rule nearing

WASHINGTON (Reuters) – U.S. regulators hope to vote in December on a rule that would bar banks from gambling with their own money, the nation’s top derivatives regulator said on Wednesday, in a sign that the acrimonious process of writing the Volcker rule is drawing to an end.

The rule, which was devised by former Federal Reserve Chairman Paul Volcker and is part of the 2010 Dodd-Frank Wall Street reform law, will prohibit Wall Street banks from risky trades in financial markets using their own capital, known as proprietary trading.

Oct 30, 2013

U.S. swaps watchdog votes on client protection rules

WASHINGTON, Oct 30 (Reuters) – The U.S. derivatives
regulator met on Wednesday to adopt a plan to better protect
customers of futures brokers after the collapse of MF Global
left clients struggling to get back their cash.

The new customer protection rule will require brokers – the
biggest of whom are units of large Wall Street banks – to
tighten up reporting and disclosure procedures, and set aside
their own cash to cover client shortfalls.

Oct 28, 2013

Fed to outline bank commodity policy early 2014 -source

WASHINGTON/LONDON, Oct 28 (Reuters) – The U.S. Federal
Reserve may not unveil its plans for regulating Wall Street’s
commodity trading business until early next year, a person
briefed on the matter said, deferring a decision on the
politically fraught debate into 2014.

The timing confounds any expectations that the regulator
would make its views known before a second Senate hearing
expected next month into the rigging of aluminum and other
markets, at which Fed officials are due to testify.

Oct 28, 2013

Fed may outline commodity policy for banks early 2014 -source

WASHINGTON, Oct 28 (Reuters) – The U.S. Federal Reserve may
not unveil its plans for regulating Wall Street’s commodity
trading business until early next year, a person briefed on the
matter said, deferring a decision on the politically fraught
debate into 2014.

The timing confounds any expectations that the regulator
would make its views known before a second Senate hearing
expected next month into the rigging of aluminum and other
markets, at which Fed officials are due to testify.

    • 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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