NFA reminded members that retail foreign exchange dealers / forex dealer members and introducing brokers must account in their net capital computations for guaranteed obligations and liabilities of subsidiaries or affiliates.
The CFTC Division of Swap Dealer and Intermediary Oversight granted no-action relief to futures commission merchants and introducing brokers concerning net capital treatment of covered loans received under the Paycheck Protection Program.
The CFTC Division of Swap Dealer and Intermediary Oversight granted no-action relief to futures commission merchants, retail foreign exchange dealers and introducing brokers in relation to the capital treatment of operating leases.
The National Futures Association charged a registered independent introducing broker with failing to maintain the required minimum adjusted net capital, file telegraphic notice of its capital deficiencies with the NFA in a timely manner and keep current books and records.
CFTC Commissioner Brian Quintenz expressed concern that post-crisis reforms were not appropriately tailored to address market-specific risks, and that regulators are disincentivizing activity that is necessary for healthy, efficient markets.
SEC Deputy Chief Accountant Sagar Teotia discussed the implementation of new Generally Accepted Accounting Principles on revenue recognition, leases and measurement of credit losses on financial instruments.
The CFTC proposed rules establishing minimum capital, liquidity, financial reporting and other related requirements applicable to CFTC-registered swap dealers and major swap participants. Comments on the proposed rules must be submitted by March 16, 2017.
In its latest Research Note, ISDA examined key trends in clearing for small derivatives users by analyzing publicly available data on clearing, and by surveying small derivatives users in the United States and the European Union.
CFTC Commissioner J. Christopher Giancarlo called for a "thorough and unbiased analysis by U.S. financial regulators and their overseas counterparts of the systemic risk of unprecedented capital constraining regulations on global financial and risk-transfer markets."
The NFA barred an introducing broker from membership permanently for failing to (i) maintain required minimum adjusted net capital, (ii) keep current and accurate books and records, and (iii) supervise its employees adequately.
The CFTC simultaneously filed and settled charges against a registered futures commission merchant for failing to report (i) a customer residual account deficiency and (ii) special account positions held by large traders.
The CFTC approved rule amendments and an interpretive notice filed by the NFA concerning enhanced protections afforded to the retail customers of NFA forex dealer members ("FDMs"). The approved amendments include requirements that: (i) impose additional capital requirements on FDMs; (ii) FDMs...
The NFA permanently barred a financial firm, previously an NFA Member introducing broker, from NFA membership. The decision is based on a complaint authorized by the NFA's Business Conduct Committee that alleged, among other things, that the firm failed to keep accurate financial records, failed to...
The NFA filed a proposal with the CFTC to amend NFA Compliance Rule 2-36. The amendments involve forex transactions and financial requirements, and would create a risk management program for forex dealer members. Specifically, the amendments to Compliance Rule 2-36 would require each forex dealer...
NFA issued separate Complaints charging two NFA-registered introducing brokers with AML program violations and recordkeeping and capital minimum failures. NFA charged DMFiala LTD ("DMF") with failing to fully implement the firm's anti-money laundering ("AML") program, thereby violating NFA...