The CFTC Market Risk Advisory Committee approved recommendations for the scheduled October 2020 shift to the Secured Overnight Financing Rate for central counterparties discounting and price alignment interest at certain clearinghouses.
At a meeting of the CFTC Market Risk Advisory Committee, subcommittees and industry representatives provided updates on the transition to the Secured Overnight Financing Rate and the impact of the pandemic on market infrastructure and trade volumes.
The Committee on Payments and Market Infrastructures and IOSCO recommended practices that central counterparties might consider in "the development of, and improvements to, default management auction rules, governance arrangements" and related procedures.
The European Commission proposed three draft delegated acts concerning supervision of third-country central counterparties by the European Securities and Markets Authority.
A CFTC Market Risk Advisory Subcommittee considered Central Counterparty Clearing House-proposed plans "for the transition of discounting and price alignment interest for certain products to the secured overnight financing rate."
The CFTC Divisions of Market Oversight, Swap Dealer and Intermediary Oversight, and Clearing and Risk warned regulated entities "to prepare for the possibility that certain contracts may continue to experience extreme market volatility, low liquidity and possibly negative pricing."
The SEC amended the definitions of "covered clearing agency," "central securities depository services" and "sensitivity analysis" to be applicable to central counterparties and securities depositories.
A CFTC final rule to exempt certain transactions with the European Stability Mechanism from uncleared swap margin requirements was published in the Federal Register.
The SEC amended the definitions of "covered clearing agency," "central securities depository services," and "sensitivity analysis" to be applicable to central counterparties and securities depositories.
The SEC provided conditional compliance relief for registered transfer agents concerning (i) the clearance and settlement of securities transactions; and (ii) the safeguarding of securities and funds.
SIFMA, IIB, ISDA, and FIA recommended changes to CFTC-proposed cross-border regulations concerning registration thresholds and certain requirements applicable to swap dealers and major swap participants.
The Federal Reserve Bank of New York analyzed the potential impact of a cyberattack transmitted through a payment system against a (i) single large bank, (ii) group of smaller banks and (iii) common service provider.
The CFTC voted to (i) approve a final rule amending regulations governing derivatives clearing organizations, (ii) propose a prohibition on "post-trade name give-up" at swap execution facilities and (iii) propose new cross-border rules governing registration requirements applicable to swap dealers and major swap participants.
The Committee on Payments and Market Infrastructures and IOSCO reported that there is increasing coordination among global financial authorities in overseeing financial market infrastructures.
A group of fourteen trade associations urged the European Commission to grant an extension for the temporary equivalence for UK central counterparties until certain regulatory implementations have been made under EMIR 2.2 and until the European Securities and Markets Authority.
The SEC Division of Trading and Markets issued a time-limited no-action letter allowing a New York limited purpose trust company to use blockchain technology to settle equities securities trades.
A CFTC proposal amending uncleared swap margin regulations to exempt certain transactions from the European Stability Mechanism was published in the Federal Register.
