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Mar 27, 2014

U.S. fines Morgan Stanley for not segregating client funds

WASHINGTON (Reuters) – The Commodity Futures Trading Commission on Thursday fined Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) $490,000 for violating rules that require futures brokers to protect clients by keeping their money segregated from other funds on the bank’s books.

Morgan Stanley’s futures trading unit transferred some $16 million from a segregated client account in 2013, and it also mixed segregated funds and its own money during a six-month period in 2012.

Mar 26, 2014

Fed bars shareholder payout plans from Citi, four other banks

WASHINGTON (Reuters) – The U.S. Federal Reserve on Wednesday rejected Citigroup’s planned payout to shareholders because of shortcomings found in its annual check-up of the financial health of the country’s biggest banks, the second time Citi was dealt a blow in the so-called stress tests.

Citi was among five banks that the Federal Reserve blocked from going through with planned payouts because of results from the stress tests.

Mar 26, 2014

U.S. banks brace for second Fed health check in a week

WASHINGTON (Reuters) – U.S. banks will tell shareholders on Wednesday how much they plan to pay out after the U.S. Federal Reserve unveils whether they can afford the cost and still be robust enough to weather the next crisis.

It is part of a two-step annual regulatory check-up of the health of the largest U.S. banks. Last week, the Fed said that all but one of 30 banks had passed a model run of a simulated crisis similar to 2007-09 credit meltdown.

Mar 25, 2014

Exclusives: Market operators hinder CFTC as it seeks to monitor swaps – sources

WASHINGTON (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 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.

    • 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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