Regulator Newsmakers


12/19/14 Fed Grants Volcker Reprieve in Banks’ Second Big Win This Month

  • The Federal Reserve granted the delay yesterday after banks said selling the stakes quickly might force them to accept discount prices. Goldman Sachs Group Inc. has $11.4 billion in private-equity funds, hedge funds and similar investments, while Morgan Stanley has $5 billion, securities filings show.”

12/18/14 UK Supreme Court Says Rusal Can’t Appeal LME Warehouse Case 

  • Britain’s Supreme Court has denied Rusal, the world’s biggest aluminium producer, the right to appeal against a court ruling that allows sweeping reform of the London Metal Exchange (LME) warehousing system, and also ordered it to pay costs.”

12/18/14 U.S. Treasury Criticizes Europe’s Plan to Fix Tainted Benchmarks

  • The plan requires that other countries have equivalent oversight of indexes, which could prevent European banks and asset managers from using U.S. benchmarks, according to a counselor to Treasury Secretary Jacob J. Lew. Europe wants national governments to take responsibility for regulating financial and commodity benchmarks — something the U.S. has no plans to do.”

12/18/14 Royal Bank to Pay $35 Million to End CFTC Wash-Trade Suit

  • The bank neither admitted nor denied wrongdoing, according to a consent order signed by a judge today in the 2012 lawsuit by the Commodity Futures Trading Commission. U.S. District Judge Alvin Hellerstein in Manhattan permanently barred the bank from entering into or confirming so-called wash trades.”


CFTC Corner


12/16/14 PR7079-14 CFTC Staff Issues Time-Limited No-Action Relief From Certain Recordkeeping Requirements under Commission Regulation 1.35(a)

  • Specifically, the letter provides that commodity trading advisors that are registered with the CFTC and are members of designated contract markets or of swap execution facilities will not be required to record oral communications. This is an extension and expansion of the time-limited no-action relief that was provided in CFTC Staff Letter No. 14-60.”

12/18/14 PR7084-14 CFTC Issue Extensions of No-Action Relied to Four Foreign Clearing Organizations

  • The U.S. Commodity Futures Trading Commission’s (Commission) Division of Clearing and Risk (DCR) today issued extensions of no-action relief to four foreign clearing organizations: ASX Clear (Futures) Pty Limited, Clearing Corporation of India Ltd., Korea Exchange, Inc., and OTC Clearing Hong Kong Limited.”

12/18/14 PR7086-14 Federal Court Orders Royal Bank of Canada to Pay $35 Million Penalty for Illegal Wash Sales, Fictitious Sales, and Noncompetitive Transactions

  • The court’s Order arises from a Complaint filed by the CFTC on October 17, 2012, that charged RBC with engaging in illegal wash sales, fictitious sales, and noncompetitive transactions involving stock futures contracts, among other illegal conduct (see CFTC Press Release 6223-12, April 2, 2012).  In its Order, the court found that between June 1, 2007 and May 31, 2010, RBC knowingly executed 1,026 illegal wash sales and fictitious sales of narrow-based stock index futures (NBI) and single stock futures (SSF) contracts.  RBC conducted the transactions as block trades through its branches and internal trading accounts trading opposite two of RBC’s off-shore subsidiaries, and executed the trades on the OneChicago, LLC futures exchange in Chicago, Illinois.  The court also found that RBC’s NBI and SSF transactions were noncompetitive transactions prohibited by CFTC Regulations.  “
  • CFTC v. RBC Consent Order


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