LexisNexis® Legal Newsroom
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...

The Week In Securities Litigation: SEC Settles 'Suspicious Trading' Insider Trading Action

Significant events this week included the proposal by the SEC of additional swaps rules regarding security-based swap dealers and major participants. Enforcement settled a "suspicious trading" insider trading action with a Hong Kong based entity while initiating a case against an investment...

The Week In Securities Litigation: Focus On White Collar Criminal Securities Cases

The focus this week was on white collar criminal securities cases. First, Rajat Gjupta, the former Goldman Sachs director convicted of passing confidential information to former hedge fund mogul Raja Rajartnam was sentenced. Second, Mr. Rajartnam's appeal of his conviction on insider trading and...

The Week in Securities Litigation: SEC Says Enforcement Program Remains Vibrant

The Commission announced that its enforcement program remains vibrant, having filed just one less action last year that its record setting 735 actions in the prior fiscal year. The enforcement program is being bolstered by over 3,000 whistleblower complaints that were filed last year from all 50 fifty...

The Week In Securities Litigation: SEC Brings Action Against 8 Fund Directors, 2 Actions Focused On Chinese Issues

The SEC brought an action against eight fund directors, six of whom were independent and members of the audit committee, alleging that they caused material misstatements in the valuation of fund assets by failing to implement proper standards. The agency also brought two actions focused on Chinese issues...

UBS To Pay $1.5 Billion To Settle Allegations Of Bid Rigging

WASHINGTON, D.C. — (Mealey's) Swiss Bank UBS AG has agreed to pay $1.5 billion to U.S., U.K. and Swiss authorities to settle allegations that it was involved in rigging the London Interbank Offered Rate (LIBOR), and UBS unit UBS Securities Japan Co. Ltd. (UBS Japan) has agreed to plead guilty...

The Week in Securities Litigation: Martoma Enters Not Guilty Plea In Insider Trading Case

In this holiday shortened first week of the year, one of the most significant current cases moved forward with the entry of a not guilty plea by Mathew Martoma to insider trading charges. Mr. Martoma is the latest person charged in the on-going insider trading wars being waged by the Manhattan U.S. Attorney's...

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...

Russell Wasendorf Gets 50-Year Sentence For Fraud Related To Peregrine Bankruptcy

CEDAR FALLS, Iowa- (Mealey's) A federal judge in Iowa on Jan. 31 sentenced Russell R. Wasendorf, the former CEO of bankrupt Peregrine Financial Group Inc., to 50 years in federal prison for stealing more than $215.53 million in customer funds while he operated his commodities futures business ( USA...

The Week In Securities Litigation: SEC, CFTC Chairmen Testify; 2 Sentenced To Long Prison Terms

SEC Chairman Elise Walter and CFTC Chairman Gary Gensler testified before a Senate Committee this week, focusing on the implementation of Dodd-Frank. The SEC also approved the budget for the PCAOB. Two former senior executive in the organization of jailed Ponzi schemer Allen Stanford were sentenced...

The Week In Securities Litigation: SEC Settles 2 Insider Trading Cases

The SEC settled two insider trading cases this week in which S.A.C. Capital was named as a relief defendant. In one it obtained the largest payment to date in an insider trading case, about $600 million. Reportedly S.A.C. Capital will fund the settlement. The second was one of the Dell insider trading...

The Week in Securities Litigation: SAC Capital, Insider Trading And Facebook Dominate

Speculation about SAC Capital and Steve Cohen, insider trading and Facebook dominated securities enforcement litigation this week. Although SAC Capital has tentatively resolved matters for the moment with enforcement officials, a ruling in private litigation involving Mr. Cohen sparked fresh speculation...

Defendants In Ponzi Scheme To Defraud Investment Clubs To Pay $55 Million

WEST PALM BEACH, Fla. - (Mealey's) A federal judge in Florida on April 24 signed consent orders in which defendants agreed to pay nearly $55 million to end a suit in which the U.S. Commodity Futures Trading Commission (CFTC) alleged that they orchestrated a $28 million Ponzi scheme to defraud investment...

The Week In Securities Litigation: First Co-Directors Of SEC's Enforcement Division Take The Helm

George Canellos and Andrew Ceresney, two former colleagues in the Manhattan U.S. Attorney's Office, became the first Co-Directors of the SEC's Enforcement Division. The Division also secured a ruling this week which will permit its subpoena enforcement action against the PRC based affiliate...

The Week In Securities Litigation: Money Market Funds The SEC Focus

Money market funds were the focus this week at the Commission. The agency issued proposed regulations for comment which may revise the operations of the widely used investment vehicles. The action follows a failed effort last year to propose new regulations and a warning from the FSOC that it may step...

Federal Regulators: Corzine Misused Funds, ‘Responsible’ For MF Global’s Collapse

NEW YORK — (Mealey’s) The U.S. Commodities Futures Trading Commission (CFTC) on June 27 filed a civil complaint in the U.S. District Court for the Southern District of New York, alleging that Jon S. Corzine, as CEO of bankrupt MF Global Holdings Ltd. (MFGH), is legally responsible for MFGH’s...

The Week In Securities Litigation: SAC Capital, Steven Cohen Focus Of Enforcement Litigation

SAC Capital and Steven Cohen were the focus of securities enforcement litigation this week. Criminal wire and securities fraud charges were brought against the four primary entities that make up SAC Capital. Civil failure to supervise charges were brought against the firm’s founder, Steven Cohen...

The Week in Securities Litigation: SEC Files Another Reg FD Action

The recent NASDAQ outage was a key focus this week. The SEC held a meeting attended by the leaders of the securities and options exchanges, FINRA, DTCC and the Options Clearing Corporation. At its conclusion the SEC Chair gave the participants a homework assignment: Come up with a list of concrete measures...

The Week In Securities Litigation: JP Morgan Settles London Whale Trading Charges

The Commission obtained its second settlement under its new policy which requires admissions in select, settling enforcement actions. This time JPMorgan settled books, records and internal control charges stemming from the so-called London Whale trading debacle. The settlement was based on admissions...

CFTC Orders Russian Bank President to Pay $250,000 Penalty

The U.S. Commodity Futures Trading Commission (CFTC) has entered an order requiring foreign national Artem Obolensky of Moscow, Russia, to pay a $250,000 civil monetary penalty for making false and misleading statements of material fact to CFTC staff in an interview during a CFTC Division of Enforcement...

Cadwalader Clients & Friends Memo: FERC and CFTC Reach Agreement on Information Sharing and Jurisdiction

After a fair amount of back-channel arm-twisting, the two agencies with principal (and sometimes overlapping) jurisdiction over energy commodities have reached agreement on two memoranda of understanding (“ MOUs ”) required by the Dodd-Frank Act. On January 2, 2014, the Federal Energy Regulatory...

Fraud Regulator Calls Obama Administration Budget ‘Woefully Insufficient’

Commissioner Bart Chilton of the Commodity Futures Trading Commission (“CFTC”) is calling the proposed funding for the agency in President Obama’s proposed fiscal year 2015 budget “woefully insufficient” given the agency’s increased responsibilities under the Dodd...

Lloyds to Pay $370M to Settle Libor Manipulation Claims in U.S., U.K.

WASHINGTON, D.C. — (Mealey’s) Lloyds Banking Group plc has agreed to pay a total of $370 million to settle claims with U.S. and British agencies alleging that Lloyds violated various laws by manipulating the London Interbank Offered Rate (Libor), according a press release issued by the Department...

Cadwalader, Wickersham & Taft LLP: CFTC Issues Proposed Order to Exempt Certain SPP Transactions from Regulation Under Most Provisions of the CEA and CFTC Rules

By Paul Pantano , Sohair Aguirre and Lamiya Rahman On May 19, 2015, the Commodity Futures Trading Commission (“ CFTC ” or “ Commission ”) issued an order in response to an application from Southwest Power Pool, Inc. (“ SPP ”) proposing to exempt three categories...

Troutman Sanders LLP: California District Court Affirms FERC’s Jurisdiction in Barclays Civil Penalty Case

On May 20, 2015, the U.S. District Court of the Eastern District of California (“District Court”) upheld FERC’s decision that it had jurisdiction over Barclays Bank PLC and four traders (collectively, “Barclays”) for allegedly manipulating electricity markets in the West...