Industry Issues and Improvements

12/08/14 How the Bankruptcy Code Should Treat All Derivatives

  • “Financial institutions can keep their derivatives books in place through a combination of the provisions of Dodd-Frank and new industry agreements that provide that an insolvency proceeding of a holding company will not disrupt the trades of an operating subsidiary, despite provisions in the contracts to the contrary.”

12/08/14 ICE Sells Remaining Euronext Stake, Profiting From 23% Rally

  • Shares in the operator of stock exchanges in France, the Netherlands, Belgium and Portugal have rallied to 24.66 euros from their sale price of 20 euros. ICE offered Euronext’s stock through a private placement to institutional investors, it said in the statement.”

12/08/14 Vanguard Turns Firepower on Shake-up of Financial Advice Market 

  • Executives at Vanguard’s Valley Forge, Pennsylvania headquarters have been quietly working on a way to give simple but effective portfolio advice to US savers. It promises to offer the service at a fraction of the cost of the average financial adviser, 0.3 per cent of assets annually compared with an industry average of more than 1 per cent.”


Regulator Newsmakers


12/08/14 CFTC Bans Credit Card Use by Retail Foreign Exchange Investors

  • By funding a retail account with a credit card and making a losing bet using leverage as high as 50-1, a trader can lose 100 percent of the investment in a matter of days, as Bloomberg Markets magazine reported in its December issue. The investor would pay at least a 3 percent upfront credit card fee for a cash advance, as well as an interest rate as high as 25 percent on the debt.”

12/08/14 If the Treasuries are Manipulated, Good Luck Finding Any Cops

  • Rules first enacted in 1986 that have gone virtually untouched for a decade and a half are allowing computerized firms to outmaneuver less-savvy rivals and, some executives assert, manipulate prices. They say a lack of cohesive regulation and technology to monitor high-frequency traders is making the world’s biggest government bond market more dangerous for everyone.”


CFTC Corner


11/19/14 PR7063-14 CFTC Launches National Campaign to Protect Consumers from Financial Fraud

  • The U.S. Commodity Futures Trading Commission (CFTC) today launched CFTC SmartCheck, a new national campaign to help investors identify and protect themselves against financial fraud. The comprehensive campaign includes a new website, a national advertising campaign and interactive videos that will help investors spot investment offers that are potentially fraudulent. The new website,, unveiled today, is an educational tool that helps investors conduct background checks of financial professionals.”

11/25/14 PR7068-14 CFTC Staff Issues No Action Relief for Family Offices From Commodity Trading Advisor Registration

  •  The U.S. Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (Division) issued a no-action letter providing family offices relief from commodity trading advisor registration, in connection with advisory services they provide to family clients.”

12/04/14 PR7074-14 Paul Greenwood Sentenced to 10 Years in Federal Prison for Billion-Dollar Investment Scam

  • The criminal charges arose from Greenwood’s solicitation fraud and misappropriation of pool participant funds, as charged in a Complaint filed by the CFTC on February 25, 2009 (see CFTC Press Release 5621-09) and a companion Complaint filed by the Securities and Exchange Commission. According to findings in Consent Orders entered earlier in the CFTC case, from at least 1996 to 2009, Greenwood and a co-Defendant solicited more than $7.6 billion from institutional investors, including charitable and university foundations and pension and retirement plans through Westridge Capital Management, WG Trading Investors, LP, and other entities. The Defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Greenwood and the co-Defendant siphoned funds.”

PR7075-14 CFTC Announces Agenda for Upcoming Agricultural Advisory Committee Meeting

  • “The U.S. Commodity Futures Trading Commission (CFTC) announced today the agenda for the upcoming Agricultural Advisory Committee (AAC) meeting on Tuesday, December 9, 2014 at 10:00 a.m., at its headquarters in Washington, DC. The agenda includes USDA Secretary Tom Vilsack, who will present on the state of the agriculture economy. For information about the meeting, including attending, viewing and listening instructions, see CFTC News Release 7061-14.

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