Tri-Party Repo Data: October 2017

The Federal Reserve Bank of New York (FRBNY) released the monthly statistics of the U.S. tri-party repo market for October 2017.

Tri-party repo statistics are available on a consolidated basis through the FRBNY’s tri-party repo interactive tool (available here) and master excel data file (current version here and click on Downloads).  Continue Reading

Attention Non-Swap Dealer Banks – CFTC Commissioner Quintenz Advocates for Changes to De Minimis and IDI Exception from Swap Dealer Regulation

In a speech yesterday for the Mercatus Center at George Mason University and the Institute for Financial Markets,  CFTC Commissioner Brian Quintenz advocated for: Continue Reading

Buy Side Overview of Fed Reserve Rule Restricting Certain Contractual Default Rights Under Repo, Securities Lending and Derivative Contracts

The Board of Governors of the Federal Reserve System (Fed Reserve) recently issued a final rule entitled “Restrictions on Qualified Financial Contracts of Systemically Important U.S. Banking Organizations and U.S. Operations of Systemically Important Foreign Banking Organizations; Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions” (hereafter the “Final Rule” and available here.  The Final Rule would impose restrictions on contractual certain default  (and cross default) rights contained in certain repo, derivative and securities lending agreements.  Continue Reading

LabCFTC Publishes “A Primer on Virtual Currencies”

Earlier today, LabCFTC released, “A Primer on Virtual Currencies,” which it describes as being the first of a series of publications “to help market participants and innovators navigate the FinTech landscape”.  The publication, which provides an overview of “virtual currencies and their potential use-cases,” is noteworthy for several reasons: Continue Reading

Tri-Party Repo Data: September 2017

The Federal Reserve Bank of New York (FRBNY) released the monthly statistics of the U.S. tri-party repo market for September 2017.

Tri-party repo statistics are available on a consolidated basis through the FRBNY’s tri-party repo interactive tool (available here) and master excel data file (current version here).  Continue Reading

CFTC DCR: Variation Margin Payments Are Settlement of Cleared Swap Exposures, Not Collateral

Earlier today, the CFTC’s Division of Clearing and Risk issued an interpretation stating that, “variation margin (‘VM’) payments and all other payments in satisfaction of outstanding exposures on counterparty’s cleared swap positions constitute settlement of the outstanding exposure and not collateral against it.”  The practical effect of this interpretation Continue Reading

FinTech Highlights from CFTC Chairman Giancarlo’s Testimony Before House Agricultural Committee

Yesterday, CFTC Chairman Christopher Giancarlo testified before the House Agricultural Committee. The following are highlights of “Fin Tech” issues addressed during the course of that testimony. Continue reading “FinTech Highlights from CFTC Chairman Giancarlo’s Testimony Before House Agricultural Committee” from the FinTech Report here.

Good day.  Good to stay current on these very current events. DR2.

CFTC To Further Delay Swap Dealer DeMinimis Phase-In

In testimony earlier today before the House Agricultural Committee, CFTC Chairman Christopher Giancarlo announced his advocacy of a one-year delay in the implementation of the reduction in swap dealer de minimis level.  As background, a bank or other market participant can engage in a de minimis level of swap dealing activity without having to register as a swap dealer.  Presently, the de minimis level is set at $8 billion, Continue Reading

CFTC Grants CPO/CTA No-Action Relief to Oil and Gas Fund and Its Operating Subsidiaries

In CFTC Letter 17-48, the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “CFTC”) indicated that it would not recommend enforcement action against the manager of a oil and gas fund and its subsidiaries for failure to register as a commodity pool operator (“CPO”) or a commodity trading advisor (“CTA”).  As background, the manager intended to use over-the-counter swap transactions (“Swaps”) to hedge commodity price risks relating to oil and natural gas investments made by the fund and its subsidiaries (collectively, the “Fund”).  The following are the key facts presented in CFTC Letter 17-48: Continue Reading

CFTC Files Charges in Bitcoin Ponzi Scheme

On September 21st, the Commodity Futures Trading Commission (“CFTC”) announced the filing of charges against Nicholas Gelfman and Gelfman Blueprint, Inc. (the “Defendants”) for fraud, misappropriation, and issuing false account statements in connection with solicited investments in Bitcoin.  According to the allegations asserted by the CFTC, the Defendants operated a Ponzi scheme, misappropriated funds from investors, and took steps to conceal losses (including by staging a “hack” on its computer systems designed to conceal what were actually trading losses and depletion of funds due to misappropriation).

The enforcement action is notable for two reasons: Continue Reading

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