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Sutherland Alert: CFTC Issues Sixth Series of Proposed Rules Under Dodd-Frank Including Rules to Further Define Swap Entities December 2, 2010

by The Sutherland Regulatory Reform Task Force Team The Commodity Futures Trading Commission (CFTC) issued its sixth series of proposed rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) at an open meeting held yesterday, Wednesday, December 1, 2010. The proposed...

SEC Registration Issues

New Fund Manager Registration Requirement - under the Dodd-Frank Act, the previous exemption from registration for fund managers was eliminated. This generally means that hedge fund and private equity fund managers will be required to register as investment advisers with the SEC. Recently the SEC has...

Sutherland Alert: Chairman Gensler Outlines Timeline for Finalizing and Implementing the Commodity Futures Trading Commission’s Dodd-Frank Rulemakings March 18, 2011

by Jamie Cain In a speech (a copy of which can be found here ) at the recent Futures Industry Association (FIA) conference held in Boca Raton, Florida, earlier this week, Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler laid out his new "best case" plan for proposing the...

Sutherland Alert-CFTC Proposes to Extend July 14 Temporary Exemptive Relief Order

by Ray Ramirez and Jamie Cain Last week the Commodity Futures Trading Commission ("CFTC") approved the issuance of a Proposed Amendment to a July 14, 2011, Temporary Exemptive Relief Order (the "July 14 Order") that grants market participants temporary exemptive relief from certain...

CFTC Sues Royal Bank of Canada for Years Long Wash Sale Scheme

The Commodity Futures Trading Commission filed an enforcement action against the Royal Bank of Canada alleging a years long, riskless wash sale scheme conducted by a small group of RBC personnel to generate certain lucrative Canadian tax benefits. The trades were not conducted in an arms-length manner...

CFTC Re-Imposes Limitations on Derivative Activities by Registered Investment Companies

Amended Rule 4.5 will require the operators of Registered Funds to either limit such Funds' use of commodity futures, options, leverage contracts, retail forex contracts, and swaps (together, "commodity interests") or submit to dual regulation by the CFTC and the Securities and Exchange...

Barclays To Pay Nearly $450 Million To Settle Rate Manipulation Claims

WASHINGTON, D.C. - The U.S. Commodity Futures Trading Commission (CFTC) yesterday announced that it had filed and settled charges against Barclays PLC, Barclays Bank PLC and Barclays Capital Inc. (collectively, Barclays) over Barclays' attempted manipulation and issuance of false reports regarding...

DLA Piper: CFTC Issues Two Proposals Affecting Those Engaging In Swaps Activities

The Commodity Futures Trading Commission has unanimously voted by seriatim (without a meeting) to issue two proposals which will affect "U.S. persons" who engage in swaps activities. The proposals address the hotly debated application of Dodd-Frank outside US soil, commonly referred to as "extraterritoriality"...

Another CFTC Suit Centered On Missing Client Segregated Funds

The MF Global debacle is still unwinding. The question of using customer money which is supposed to be segregated for their protection remains a key issue. With no resolution near, the CFTC has another matter regarding a futures commission merchant and segregated funds. This action involves Peregrine...

This Week In Securities Litigation (Week ending July 13, 2012)

The Commission approved new rules regarding the much discussed consolidated audit trail this week while continuing to issue rules under Dodd-Frank. Now the exchanges and FINRA will be required to implement the provisions regarding the consolidated audit trail. SEC enforcement brought actions centered...

SEC and CFTC Propose Identity Theft Red Flag Rules

by Andras P. Teleki This EIA focuses on the SEC version of the Red Flag Rules. The SEC version of the Red Flag Rules will be known as Regulation S-ID and would be added after Regulations S-P and S-AM when codified. Excerpt: On March 6, 2012, the SEC and CFTC jointly proposed rules (the "Proposal"...

The CFTC’s No-Action Letter Relating to Eligible Contract Participants and Swap Guarantee Arrangements

In a no-action letter issued on October 12, 2012 (the "No-Action Letter"), the Office of the General Counsel ("OGC") of the Commodity Futures Trading Commission (the "CFTC") clarified a number of matters relating to the parties and guarantors that will qualify for treatment...

CFTC Staff Responds to FAQs Regarding Rescission/Modification of CPO/CTA Registration Exemptions

by Lawrence B. Patent and Cary J. Meer Excerpt: The Division of Swap Dealer and Intermediary Oversight ("DSIO") of the Commodity Futures Trading Commission ("CFTC") issued responses on August 14, 2012 to frequently asked questions ("FAQs") submitted by several trade...