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Oct 8, 2013

U.S. swaps markets go unpoliced in shutdown, regulator warns

WASHINGTON (Reuters) – Hundreds of trillions of dollars worth of derivatives are changing hands unsupervised during the U.S. government shutdown, raising the risk that doubtful activity goes by unnoticed, a top regulator warned.

“The cops aren’t on the beat looking at the derivatives markets in the United States,” Bart Chilton, a member of the Commodity Futures Trading Commission (CFTC) told CNBC television in an interview on Tuesday.

Oct 4, 2013

Change U.S. law on banks and commodities, regulator says

WASHINGTON (Reuters) – Congress should limit Wall Street’s controversial role in commodity markets, and rewrite a law that gives banks broad leeway to own oil, metals and other raw materials, a senior U.S. regulator said on Friday.

The Federal Reserve, the top U.S. bank watchdog, is rethinking its policy of allowing banks to operate in commodity markets amid accusations they inflate the prices of items such as aluminum and electricity.

Oct 2, 2013

Swap exchanges launch in threat to Wall Street profits

WASHINGTON, Oct 2 (Reuters) – More than a dozen new U.S.
exchanges opened their doors for clients on Wednesday, marking
the start of regulated trading of derivatives in a threat to one
of Wall Street’s most lucrative businesses.

Business may be tepid at first, because the bulk of the $630
trillion market will slowly move over to the exchanges in the
coming months, as part of a gradual implementation of the
Dodd-Frank law to overhaul Wall Street.

Oct 1, 2013

CFTC’s top Libor enforcer quits

WASHINGTON (Reuters) – The U.S. derivatives regulator’s top enforcer, best known for hunting down and imposing big fines on investment banks for manipulating the Libor interest rate benchmark, will be stepping down this month, the agency said on Tuesday.

The departure of David Meister, head of enforcement at the Commodity Futures Trading Commission, comes as his close ally CFTC Chairman Gary Gensler’s five-year term draws to a close at the end of the year without a clear candidate to replace him.

Sep 28, 2013

U.S. watchdog allows delay to smooth transition to swaps trading

WASHINGTON, Sept 28 (Reuters) – The U.S. derivatives
regulator late on Friday gave a new and untested type of trading
platform a bit more time to comply with some of its rules, to
smooth the transition to regulated trading next week.

The Commodity Futures Trading Commission (CFTC) has been
rushing through permits for the platforms – called Swap
Execution Facilities – that must open their doors for customers
on Wednesday.

Sep 27, 2013

U.S. swaps watchdog rushes trading 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 permits for companies 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 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.

    • 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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