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Sep 27, 2013

U.S. swaps regulator rushes plan approvals as shutdown looms

WASHINGTON, Sept 27 (Reuters) – The U.S. derivatives
regulator has been rushing through approvals for a new untested
type of trading platform before a possible government shutdown
next week, the head of the agency said on Friday.

The agency has hastily pushed out approvals for companies
planning to run the exchanges to trade swaps – called Swap
Execution Facilities – that will go live Wednesday, as part of
an overhaul of Wall Street after the crisis.

Sep 25, 2013

U.S. CFTC lacks successor to chief as new duties loom

WASHINGTON, Sept 25 (Reuters) – A leadership vacuum at the
top U.S. derivatives regulator could weigh down the Commodity
Futures Trading Commission’s efforts to police financial markets
using vast new powers Congress gave it after the financial
crisis, lobbyists and people inside the regulator said.

The White House has yet to nominate a candidate to replace
CFTC Chairman Gary Gensler, who will end his five-year term at
the end of the year.

Sep 25, 2013

U.S. ends long-running silver market probe, taking no action

NEW YORK/WASHINGTON (Reuters) – U.S. regulators on Wednesday closed a five-year investigation into alleged manipulation of the silver market, saying 7,000 staff hours of investigation produced no evidence of wrongdoing.

The decision by the Commodity Futures Trading Commission was a defeat for silver commentators and investors who urged the probe, saying big banks were selling the metal short using futures and options to hold prices down. Big traders had dismissed the investigation as a waste of time and the charges as a conspiracy theory.

Sep 23, 2013

U.S. lawmakers to seek action on Wall Street commodity bets: sources

WASHINGTON (Reuters) – U.S. lawmakers critical of Wall Street’s sway over physical commodity markets will push financial regulators to take action at a hearing next month, two industry sources said.

Officials from the U.S. Federal Reserve and the Commodity Futures Trading Commission (CFTC) are expected to testify on October 8 before a Senate Banking Committee panel led by Senator Sherrod Brown, a vocal critic of large banks. It is the second such hearing by the committee, and follows months of unprecedented public and political scrutiny.

Sep 17, 2013

Trader sues U.S. swap regulator to stop “unfounded” case

Sept 17 (Reuters) – A Chicago speed-trading firm sued the
U.S. swaps regulator on Tuesday, saying it acted to prevent the
agency from bringing an “unfounded” case against it for
manipulating futures contracts.

DRW Investments and its founder Donald R. Wilson, for whom
the firm is named, filed the lawsuit against the Commodity
Futures Trading Commission in the U.S. District Court for the
Northern District of Illinois.

Sep 17, 2013

Speed-trader sues U.S. regulator ahead of possible manipulation case

By Douwe Miedema

(Reuters) – A Chicago speed-trading firm sued the U.S. swaps regulator on Tuesday, saying it acted to prevent the agency from bringing an unfounded case against it for manipulating futures contracts.

DRW Investments, named after founder Donald R. Wilson, a prominent Chicago trader, said it filed a complaint to prevent the Commodity Futures Trading Commission (CFTC) from bringing an enforcement action.

Sep 16, 2013

U.S. swaps watchdog names Libor enforcer as oversight chief

WASHINGTON (Reuters) – The U.S. swaps regulator on Monday named a veteran of its enforcement unit to head its markets oversight unit, as the agency deals with a raft of high-profile commodities markets probes.

Vincent McGonagle, who has worked at the Commodity Futures Trading Commission’s enforcement division for nearly 16 years, played a leading role in the probe into the widely used London interbank offered rate (Libor) benchmark scandal, the CFTC said.

Sep 13, 2013

U.S. swaps regulator seeks bank openness on commodities

WASHINGTON, Sept 13 (Reuters) – Regulators should have
better insight into the commodity businesses owned by large Wall
Street banks to help them prevent market manipulation, a senior
official at the U.S. derivatives watchdog said.

The Federal Reserve is reviewing an exception that has
allowed banks to trade physical commodities and even own metals
warehouses and oil tankers despite a law that prohibits the
mingling of finance and commerce.

Sep 12, 2013

Regulator may delay swaps trading platform compliance

WASHINGTON (Reuters) – The U.S. swaps regulator may give new exchange-like platforms more time to comply with its rules, senior officials signaled, to let the industry sort out a spate of logistical issues before trading starts.

Some 20 companies are setting up a so-called Swaps Execution Facility (SEF), an untested type of trading platform designed to make the $630 trillion swaps market less opaque, and end the practice of privately negotiating deals.

Sep 12, 2013

U.S. regulator may delay swaps trading platform compliance

WASHINGTON, Sept 12 (Reuters) – The U.S. swaps regulator may
give new exchange-like platforms more time to comply with its
rules, senior officials signaled, to let the industry sort out a
spate of logistical issues before trading starts.

Some 20 companies are setting up a so-called Swaps Execution
Facility (SEF), an untested type of trading platform designed to
make the $630 trillion swaps market less opaque, and end the
practice of privately negotiating deals.

    • 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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