Industry Issues and Improvements


12/11/14 Banks Should Keep It Simple With Bail-In Debt, Poll Says

  • Existing securities known as Tier 2 capital, which are subordinated notes and have set maturity dates, are favored given the lack of clarity from regulators on loss-absorbing bonds, according to the survey. Issuing notes out of holding companies to subordinate them is also preferred, the investors said in the survey.”

12/11/14 Euronext to Launch Derivatives Clearing Service Next Spring

  • The new service, which will launch in the spring of 2015 starting with equity derivatives, will allow deals negotiated privately between parties to be reported to Euronext and cleared through LCH.Clearnet’s French arm.”


Regulator Newsmakers


12/11/14 EU Delays Decision on U.S. Securities Clearing Rules

  • The Commission has to decide whether U.S. rules for clearing houses are as strict as those in the EU. The aim is to ensure that there will be no need to resort to taxpayer cash if things go wrong.”

12/11/14 Finra Fines 10 Wall Street Firms Over Analysts’ IPO Pitches

  • The investment banks promised favorable research to Toys “R” Us Inc. and its private-equity owners in 2010 to win roles in its initial public offering, the Financial Industry Regulatory Authority said today in a statement. The regulator fined the firms a total of $43.5 million, faulting them for “implicitly or explicitly” making promises that their analysts would give positive coverage. Six of the 10 firms didn’t have adequate supervisory procedures to prevent the practice.”

12/11/14 Basel Drafts ABS Quality Standards to Restore Confidence

  • To qualify as “simple, transparent and comparable” securitizations, the deals must fulfill 14 criteria including requirements for the originator and investor to have an “alignment of interests” as well as increased transparency, according to proposals published by the International Organization of Securities Commissions and Basel Committee on Banking Supervision today.”

12/11/14 Asset Managers Could Face Tighter Supervision Under New Plan: SEC 

  •  The top U.S. securities regulator laid out a plan on Thursday to tighten supervision of large asset managers, saying more must be done to identify the risks the firms could pose and to protect markets in the event of a major crisis.”


CFTC Corner


12/01/14 PR7072-14 CFTC to Reopen Comment Period for Position Limit Rulemaking

  •  The U.S. Commodity Futures Trading Commission (Commission) today submitted to the Federal Register a notice reopening the comment period for Position Limit Rulemaking. The notice will appear in the Federal Register on Wednesday, Dec. 3.”

12/05/14 Federal Court Orders More than $1.3 Million in Sanctions and Enters a Default Judgment Order Against Florida-Based Gold Distributors, Inc. and Its Owner, Jordan Cain, for Engaging in Illegal, Off-Exchange Commodity Transactions

  • The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge William J. Zloch of the U.S. District Court for the Southern District of Florida entered an Order of default judgment against Defendants Gold Distributors, Inc. (GDI) of Hallandale Beach, Florida, and its sole ownerJordan Cain of Miami, Florida. The Order requires the Defendants to pay restitution in the amount of $337,266 and a civil monetary penalty of $1,011,800. The Order also imposes permanent trading, solicitation, and registration bans against the Defendants and prohibits them from violating provisions of the Commodity Exchange Act (CEA), as charged.”

12/10/14 PR7077-14 CFTC Orders IBF, Inc. f/k/a Tradestation Forex, Inc. to Pay a $600,000 Penalty for Series of Minimum Net Capital Deficits, Untimely Notice, and a Failure to Supervise

  •  The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against IBFX, Inc. f/k/a Tradestation Forex, Inc. (IBFX), a Florida-based Retail Foreign Exchange Dealer (RFED), for violating CFTC Regulations by failing to meet the minimum net capital requirements on three separate occasions, failing to timely report one of the minimum net capital deficits, and failing to supervise its employees and agents diligently by establishing, implementing, and executing an adequate supervisory structure and compliance programs.”

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