In the latest installment of the Energy Metro Desk series "Drums along the Potomac," editor-in-chief John Sodergreen discussed swap execution facilities ("SEFs") and general swaps policy, citing comments from CFTC Chair Tim Massad and former CFTC Commissioner and now ISDA CEO Scott O'Malia. According to Sodergreen, the recent SEFCON V conference on SEF policy made it seem as though "SEFs, as a class, had largely failed." The article cites comments from CFTC Chair Massad at the conference, who stated that much work needs to be done regarding SEFs. In his speech, Chair Massad outlined three

The SEC and the CFTC each published their semiannual regulatory agendas. See : SEC Semiannual Regulatory Agenda; CFTC Semiannual Regulatory Agenda.

A new academic study, " High-Frequency Trading and Extreme Price Movements" (the "Study"), argues that high-frequency traders ("HTFs") are net liquidity providers during extreme price movements and consequently perform a stabilizing function for markets. The Study examines data covering trading activity on NASDAQ from 2008 and 2009. MoreWhile "some market observers claim that HFTs only supply liquidity in normal times and withdraw liquidity in times of stress," the Study's observations were the opposite: "normally, HFTs as a group demand more liquidity than they supply . . . and during price

The NFA filed with the CFTC proposed technical amendments to NFA Bylaw 406 regarding the election process for Board Representatives and Nominating Committee Members. Earlier this year, the NFA amended its Articles of Incorporation to (i) combine retail foreign exchange dealers ("RFEDs") with swaps dealers and major swap participants for purposes of representation on NFA's Board of Directors ("Board"), Executive Committee and Nominating Committee, and (ii) eliminate the requirement that NFA's Board include at least one RFED director. The proposed technical amendments to Bylaw 406, which governs

The NFA filed with the CFTC a proposed amendment to NFA Compliance Rule 2-4 ("Just and Equitable Principles of Trade") regarding swaps-related activities. NFA Compliance Rule 2-4 requires Members and Associates to observe "high standards of commercial honor and just and equitable principles of trade." The rule, however, is currently limited to a Member's commodity futures business. The proposed amendment subjects swaps to the rule's ethical standards requirement, formally imposing the requirement upon swap dealers, major swap participants and other Members engaging in swaps activities. See