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September 17, 2015

The CFTC entered an order and simultaneously settled charges against an Australia-based financial services company for failing to comply with the obligation to submit accurate large trader reports ("LTRs") for physical commodity swap positions. This failure violated Section 4s(f) of the CEA and CFTC Rules 20. 4 and 20.7. The order states that the financial services company (i) did not identify any underlying commodity, (ii) routinely populated the field for "Commodity Reference Price" in a format other than the one provided by the CFTC's Guidebook for Part 20 Reports, (iii) reported certain

November 25, 2015
Commentary by Nihal Patel

The CFTC staff provided conditional no-action relief to a provisionally registered swap dealer bank with respect to activities outside of its London branch. The no-action letter provides relief from the CFTC's "transaction-level" requirements applicable to swaps, for transactions entered into by the bank out of its London branch with non-U.S. persons who are not "conduit affiliates" or guaranteed by U.S. persons. The relief only applies to swaps with counterparties located in a foreign jurisdiction for which the CFTC has not issued a substituted compliance determination. Among other conditions

December 18, 2015

The CFTC settled charges against an investment bank that failed to disclose certain conflicts of interest to clients. Specifically, the bank failed to disclose its preference for investing client funds in certain commodity pools or exempt pools, namely hedge funds and mutual funds managed and operated by an affiliate and subsidiary of the bank. The CFTC required the bank to pay a $40 million civil monetary penalty, to disgorge $60 million and to cease and desist from further violations.

January 08, 2016
Commentary by Bob Zwirb

The CFTC Division of Clearing and Risk issued no-action relief from the swap clearing requirement to: (i) small bank holding companies and savings and loan holding companies having consolidated assets of $10 billion or less; and (ii) Community Development Financial Institutions that have received a certification from the U.S. Department of the Treasury ("CDFIs").