Featured Product

    CFTC Proposes Rules on Derivative Position Limits and Swap Execution

    February 27, 2020

    CFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting. Comments on the proposed rule on position limits for derivatives must be received before April 29, 2020. The proposed rule that amends the requirements for certain Swap Execution Facilities and real-time reporting has a comment period until April 20, 2020. CFTC also published a fact sheet on the proposed rule on position limits for derivatives.

    Proposed rule on Position Limits for Derivatives. CFTC is proposing amendments to regulations concerning speculative position limits to conform to the Dodd-Frank Act amendments to the Commodity Exchange Act. Among other amendments, CFTC proposed:

    • New and amended federal spot month limits for 25 physical commodity derivatives
    • New and amended definitions for use throughout the position limits regulations, including a revised definition of “bona fide hedging transactions or positions” and a new definition of “economically equivalent swaps”
    • Amended rules governing exchange-set limit levels and grants of exemptions therefrom
    • A new streamlined process for bona fide hedging recognitions for purposes of federal limits
    • New enumerated hedges
    • Amendments to certain regulatory provisions that would eliminate Form 204, enabling CFTC to leverage cash-market reporting submitted directly to the exchanges

    Proposed Rule on Amendments to Swap Execution Facility Requirements and Real-Time Reporting Requirements. CFTC proposed to amend certain parts of its regulations related to the execution of package transactions on swap execution facilities; the execution of block trades on swap execution facilities; and the resolution of error trades on swap execution facilities. These matters are currently the subject of relief in certain no-action letters from the CFTC staff.

     

    Related Links

    Comment Due Date: April 29, 2020/April 20, 2020

    Keywords: Americas, US, Banking, Securities, Position Limits, Swap Execution Facility, Reporting, Hedging, Dodd-Frank Act, Derivatives, Swaps, CFTC

    Featured Experts
    Related Articles
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    ESMA Responds to Proposal Related to Sustainability Standards Board

    The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7283