Archive for the 'Industry Updates' Category

Futures Legal News, February 7, 2016

February 16, 2016    |    posted by admin

February 7, 2016

CFTC Pursues Illegal Off-Exchange Precious Metals Transactions: The CFTC has obtained a federal Court Order imposing a permanent injunction against husband and wife team Cindy and Paul Vandivier of Mintline, Inc.  The Commission accused the Vandiviers and their company of soliciting customers and misappropriating customer funds in connection with illegal, off-exchange transactions in precious metals.  Specifically, the Order states that Mintline solicited customers to purchase physical metals on a leveraged, margined, or financed basis, however, the Vandiviers used that money instead to cover the company’s operating expenses and personal expenses.  Each were required to pay a $1 million civil penalty and must jointly provide restitution to Mintline’s customers.  (To read more about this, visit the CFTC).

Futures Legal News July 17, 2014

July 17, 2014    |    posted by elspeth



 

Industry Issues and Improvements

 

7/16/14 Goldman Forecasts Lower Commodity Prices as Cycle Ends

  • “Commodities from iron ore to copper and Brent crude will drop over the next five years as global supplies climb, according to Goldman Sachs Group Inc., which highlighted oil’s recent losses as a sign of increased output.”

 
7/16/14 CME to Review Livestock Trading Hours

  • CME Group Inc. plans to review trading hours for its benchmark livestock futures contracts, a spokesman said Wednesday.”

 
7/16/14 Oil Traders Hearing Contango Music Again. Not Loud Yet

  • “Traders in the Brent oil market have started to use a word that was almost forgotten in the last four years – “contango” in industry jargon, which could also be described as “music to the ears of sellers”.”‘

 
7/16/14 ICAP CEO Says Some Brokerage-Market Parts Show ‘Drought’

  • “The world’s largest broker of transactions between banks has been cutting costs and eliminating jobs to counter a slump in trading as lenders around the globe scaled back their fixed-income, currencies and commodities operations. Spencer, who founded ICAP in 1986, had his 2014 bonus cut by 75 percent after the firm was fined 55 million pounds ($94 million) in a probe by British and U.S. regulators into Libor rigging.”

 
7/16/14 Gold Fix Banks Said to Propose Changes to Pricing Process

  • “The banks running the century-old London gold fixing that’s used by miners and central banks to trade and value metal are proposing changes to the process, according to two people with knowledge of the matter.”

 

Regulator Newsmakers

 

7/15/14 ICE Pushes CFTC for Extension of Cross-Border Margin Offsets

  • “The Commodity Futures Trading Commission (CFTC) is considering a request from ICE Clear Europe to allow non-clearing members to benefit from cross-border margin offsets.”

 
7/16/14 If Argentina Settles Debt Dispute, More Claims Could Come

  • If President Cristina Kirchner opts to settle with two New York hedge funds that have won court-ordered awards of more than $1.5 billion, economists say it will most certainly lead to additional claims that will cost Argentina’s government about $13 billion.”

 
7/16/14 EU Bank Proprietary-Trading Ban Plan Runs into Opposition

  • “A “substantial number of countries” have “expressed serious concerns or reservations” about the proposed ban, according to a report prepared by Italy, which holds the EU’s rotating presidency. “Only very few countries are explicitly in favor.”

 
7/16/14 U.S. House Passes Spending Bill with Dodd-Frank Changes

  • ” The Republican-led U.S. House of Representatives on Wednesday passed a bill to slash funding for Wall Street oversight and revamp new agencies dedicated to cracking down on fraud against consumers and policing risks after the financial crisis.”

 

CFTC Corner

 

7/15/14 Keynote Address by Commissioner Scott D. O’Malia at the Quadrilateral Meeting of the European Financial Markets Lawyers Group, Financial Law Board, Financial Markets Law Committee, and Financial Markets Lawyers group and the Federal Reserve Bank of New York

  • World leaders pledged to strengthen the international financial regulatory system by working together under common principles. The G20 principles include four areas of reform: (1) exchange or electronic platform trading for standardized contracts; (2) clearing through central counterparties (CCPs) for standardized contracts; (3) transaction reporting to trade repositories; and (4) higher capital and margin requirements for non-centrally cleared transactions.I believe, however, that there is an even more fundamental principle that should underlie reform of the global derivatives markets—regulators must first do no harm.”