Financial Regulatory Forum

U.S. Treasury to move by year end on plan to exempt forex swaps, sources say

By Guest Contributor
October 24, 2012

By Emmanuel Olaoye

WASHINGTON, Oct. 24 (Thomson Reuters Accelus) - The U.S. Treasury Department will move ahead after the Nov. 6 U.S. national elections to issue its plan for exempting foreign exchange swaps, a banking industry source said. A senior government official said a decision on the issue was expected by year end, after international standards setters complete work on derivatives margin requirements.

Kill switches may be too difficult to implement despite new call by CFTC member, expert says

By Guest Contributor
October 17, 2012

By Emmanuel Olaoye, Compliance Complete

WASHINGTON, Oct. 17 (Thomson Reuters Accelus) - CFTC Commissioner Bart Chilton has called for high frequency traders, or “cheetahs” to face so-called kill switches that would shut down a broker dealer’s trading over erroneous orders or technology glitches. But a trading expert said the measure may be too difficult to implement in practice.

U.S. self-regulatory bodies move toward cost-benefit analysis

By Guest Contributor
October 9, 2012

By Nick Paraskeva, Compliance Complete contributing author

NEW YORK, Oct. 9 (Thomson Reuters Accelus) - The financial industry’s self-regulatory organizations (SROs) are being pressed to conduct more rigorous cost-benefit analyses of their rules, to the same standards as federal regulators. This follows recent court judgments overturning rules issued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), in cases brought by the industry on grounds that the rules lacked such an analysis.

EXCLUSIVE: Credit derivatives market can expect specific rules, says regulator

By Guest Contributor
October 4, 2012

By Rachel Wolcott, Compliance Complete

LONDON, Oct. 4 (Thomson Reuters Accelus) - Credit derivatives dealers can expect to see specific rules and regulations to address some of the peculiarities of that market, said Edouard Vieillefond, director in charge of regulation policy and international affairs at French regulator Autorité des marchés financiers (AMF). Despite the huge amount of regulation already aimed at the broader derivatives market, there is concern that it will be insufficient to cover continuing questions that regulators have about its functioning.

Mortgage lawsuit against JPMorgan offers refresher on basic compliance lessons

By Guest Contributor
October 3, 2012

By Stuart Gittleman

NEW YORK, Oct. 3 (Thomson Reuters Accelus) - Securities issuers that claim to have conducted due diligence on their offerings should address and remediate problems found and not ignore red flags, as made clear by the New York state fraud lawsuit against JPMorgan over they way its Bear Stearns unit dealt in mortgage securities. (more…)

IA brief: State laws may require firms to re-think social media policies

By Guest Contributor
October 3, 2012

By Jason Wallace

NEW YORK, Oct. 3 (Thomson Reuters Accelus) – Federal and state privacy legislation aiming to protect against employer access to private social media websites may put the investment industry in a bind — unable to fully supervise social-media and electronic communications used by their representatives.

Two U.S. courts offer whistleblowers conflicting guidance on protections for internal reporting

By Guest Contributor
September 26, 2012

By Gordon Schnell and Marlene Koury, Thomson Reuters Accelus contributing authors

Financial cybercrime a national security threat, U.S. Justice Department official warns

By Guest Contributor
September 21, 2012

By Julie DiMauro and Stuart Gittleman

NEW YORK, Sept. 21 (Thomson Reuters Accelus) - U.S.-based financial services institutions that don’t tell law enforcement agencies about having been victimized by cybercrime are compromising the nation’s security as well as that of their firms, a top Department of Justice official warned this week.

New U.S. FinCEN director must bolster agency under pressure over Iran sanctions, money laundering

By Guest Contributor
September 21, 2012

By Brett Wolf

NEW YORK, Sept. 21 (Thomson Reuters Accelus) - When former Justice Department official Jennifer Shasky Calvery takes the reins at the U.S. Treasury Department’s anti-money laundering bureau on Monday, her first job is to revive the beleaguered agency amid pressure over Iran sanctions and money-laundering enforcement, sources said.

“Volcker rule” exemption for liquidity management remains half-thought

By Guest Contributor
September 19, 2012

By Bora Yagiz

NEW YORK, Sept. 19 (Thomson Reuters Accelus) - The question what distinguishes a “trading account” from a legitimate liquidity management program will be a primary concern as no less than four regulators, namely the Federal Reserve, the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, finish work on the “Volcker rule” limiting risky trading by banks. The regulators jointly proposed last year the provisions for implementing section 619 of the Dodd Frank Act. Final rules are expected by year end.