Financial Regulatory Forum

Spoofing or just fast trading? Chicago case helps unwrap mystery

By Guest Contributor
November 19, 2015

By Richard Satran, Regulatory Intelligence

NEW YORK, (Thomson Reuters) – Compliance professionals were startled when a jury in the futures industry’s home base of Chicago convicted a veteran commodities trader of “spoofing,” a crime punishable by up to 25 years in prison but involving a kind of market manipulation once thought too vaguely defined to be prosecuted. It was surprising that a case of such complexity could be brought to such a conclusion, even more that jurors took just an hour of deliberation to do so.

UPDATED: IMPACT ANALYSIS: Saba Capital sued by investor over valuation practices; is SEC next?

By Guest Contributor
October 20, 2015

By Todd Ehret, Regulatory Intelligence

NEW YORK, (Thomson Reuters) – A recent U.S. lawsuit filed by the Public Sector Pension Investment Board of Canada against hedge fund manager Saba Capital Management has drawn attention to fund valuation procedures.

SEFs 2015 outlook: industry sees more flexible execution rules; harmonization

January 13, 2015

Regulatory efforts to simplify existing swap mandate rules in order to reduce fragmentation between the U.S. and Europe are likely to dominate the focus of participants in the swaps execution facility (SEF) market in 2015.

Reversal of Dodd-Frank swaps rule ignores lessons from financial crisis, ‘London whale’

December 18, 2014

The decision by U.S. Congress last week reverse the so-called swaps ”pushout” rule for certain derivatives contacts will put a greater responsibility on regulators to demonstrate they have effective oversight over bank activities of the sort that played a role in the 2008 financial crisis and ‘London whale’ trading debacle.

Forget HFT; “High Intelligence Trading” is the new frontier for technology, markets, regulation

By Guest Contributor
April 10, 2014

By Henry Engler, Compliance Complete

NEW YORK, Apr. 10, 2014 (Thomson Reuters Accelus) – While fast is good, smart is better, and with untold resources of computing power and memory banks in the clouds, the new frontier in electronic trading combines sophisticated intelligent software with rapid-fire processing, enabling traders to stay one step ahead of the regulators.

“Big data” tools will improve regulatory oversight, FINRA’s di Florio says

By Guest Contributor
February 25, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Feb. 25 (Thomson Reuters Accelus) – The Financial Industry Regulatory Authority is developing a suite of “big data” information sources and analytics to improve regulatory oversight of securities firms, according to Carlo di Florio, FINRA’s chief risk officer and head of strategy.

Regulators have several options in dealing with CLOs under Volcker rule – law firm analysis

By Guest Contributor
February 20, 2014

 By Henry Engler, Compliance Complete

NEW YORK, Feb. 20 (Thomson Reuters Accelus) – In assessing what to do with collateralized loan obligations under the Volcker rule, regulators have several options, some that are better than others for the banking industry, a leading law firm advised clients on Monday this week.

U.S. Volcker Rule places major new demands on compliance

By Guest Contributor
December 17, 2013

By Nick Paraskeva, for Compliance Complete

NEW YORK, Dec. 17 (Thomson Reuters Accelus) – The Volcker Rule final version adopted on Tuesday by U.S. regulators imposes significant compliance demands on banks, with stricter prohibitions on proprietary trading than the initial proposal two years ago, narrower exemptions for market making and hedging and a requirement that chief executives are now required to annually certify to regulators that such a compliance plan is in place.
“As a foundation, the final Volcker Rule requires banking entities to have a robust compliance program, including defined limits on market making, underwriting and hedging activities as well as continuous monitoring and management of such activities. It also requires reporting to regulators on specific metrics and trading details,” U.S. Commodity Futures Trading Commission Chairman Gary Gensler said as the rule was adopted. (more…)

SEC aims to loosen rules on foreign broker-dealers in U.S., official says

By Guest Contributor
November 26, 2013

By Nick Paraskeva, for Compliance Complete

NEW YORK, Nov. 26 (Thomson Reuters Accelus) – U.S. securities regulators are looking to loosen rules for foreign-broker dealers acting in the U.S. on a cross-border basis. The change would come in the wake of new policy being adopted to implement derivatives cross-border rules under Dodd-Frank. The reform was outlined by John Ramsay, Acting Director, Division of Trading and Markets of the Securities and Exchange Commission (SEC).

Ontario Securities Commission fines, bans “qualified person” in landmark enforcement over faked science

By Guest Contributor
April 5, 2013

By Daniel Seleanu, Compliance Complete

TORONTO, April 5 (Thomson Reuters Accelus) – In a landmark settlement, the Ontario Securities Commission (OSC) has fined and permanently banned Bernard Boily for falsifying scientific research used in press releases by Bear Lake Gold Ltd., a mining exploration company listed on the TSX Venture Exchange in Toronto. When Bear Lake Gold announced that its research had been tampered with, it suffered a one-day market capitalisation loss of $42 million.