A proprietary trading firm filed a class action complaint accusing unknown traders of manipulating the Chicago Board Options Exchange Volatility Index.
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Researchers at the Office of Financial Research questioned the application of SEC Form PF as a risk-management instrument. In a published working paper, they recommended capturing additional characteristics on the form to "constrain the range of possible risk profiles more tightly," and suggested revamping the form to better represent complex portfolios.
The CFTC settled charges that a bank and its energy subsidiary failed to comply with swap dealer requirements to submit accurate large trader reports for physical commodity swap positions.
The CFTC penalized a company and its affiliated futures commission merchant for inaccurately reporting fixed price cash positions in corn and soybeans.
The CFTC Division of Swap Dealer and Intermediary Oversight issued an interpretation of CFTC Rule 30.7(c) ("Treatment of Foreign Futures or Foreign Options Secured Amount"). CFTC Rule 30.7(c) provides that a futures commission merchant ("FCM") must deposit customer funds under the laws and regulations of the foreign jurisdiction that affords the greatest degree of protection to such funds, and provides further that an FCM may not waive any of the protections afforded to customer funds under the laws of that foreign jurisdiction. The interpretation in CFTC Letter 14-110 permits FCMs to deposit