Financial Services Bulletin: Action at Several Federal Agencies

by Perkins Coie
Contact

CFTC Proposes Order Exempting Certain Transactions of Regional Transmission Organizations and Independent System Operators

On Tuesday, August 21, 2012, the Commodity Futures Trading Commission (the "CFTC") ' approved a proposed order that would exempt certain specified transactions of Regional Transmission Organizations ("RTOs") and Independent System Operators ("ISOs") from certain provisions of the Commodity Exchange Act (the "CEA"), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), and CFTC regulations. This order is in response to a petition from certain RTOs and ISOs that are subject to regulation by either the Federal Energy Regulatory Commission ("FERC") or the Public Utility Commission of Texas ("PUCT").

The proposed order would exempt the purchase or sale of specifically defined “financial transmission rights,” “energy transactions,” “forward capacity transactions,” and “reserve or regulation transactions” that are offered or sold in a market administered by one of the petitioning RTOs or ISOs pursuant to a protocol that has been approved or permitted to take effect by FERC or PUCT. The proposed order also would exempt persons offering, entering into, or rendering advice or other services with respect to those transactions.

To be eligible for the proposed exemption, the transactions would have to be entered into by persons who are “appropriate persons,” as defined in section 4(c)(3)(A) through (J) of the CEA or “eligible contract participants,” as defined in section 1a(18) of the CEA and CFTC regulation 1.3(m). Under the proposed order, the CFTC’s general anti-fraud, anti-manipulation, enforcement, and books and records inspection authorities will continue to apply. The proposed exemption also would be subject to, among other things, the continuation of information sharing arrangements between the CFTC and FERC, and between the CFTC and PUCT.

Read the CFTC press release

Read the CFTC rule

SEC Abandons Money Market Reform Proposal

On August 22, 2012, SEC Chair Mary Schapiro announced that the Commission would not consider a money market reform proposal that would have, among other changes, permitted a floating net asset value ("NAV") rather than a fixed NAV of $1.00. SEC Commissioners Aguilar, Gallagher and Paredes each also voiced opposition to the proposed money market reforms.

Read SEC Chair Schapiro's statement

Read Commissioner Aguilar's statement

Read Commissioners Gallagher's and Paredes's statement

SEC Adopts Conflict Mineral Rules

On Wednesday, August 22, 2012, the Securities and Exchange Commission (the "SEC") adopted a rule mandated by Section 1502 of the Dodd-Frank Act to require companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country. Section 1502 directs the SEC to issue rules requiring certain companies to disclose their use of conflict minerals that include tantalum, tin, gold, or tungsten if those minerals are “necessary to the functionality or production of a product” manufactured by those companies. Companies are required to provide this disclosure on a new form to be filed with the SEC called Form SD.

Read the SEC press release

SEC Adopts Resource Extractor Government Payment Rules

On Wednesday, August 22, 2012, the SEC adopted rules mandated by Section 1504 of the Dodd-Frank Act requiring resource extraction issuers to disclose certain payments made to the U.S. government or foreign governments. Section 1504 directs the SEC to issue these rules requiring companies engaged in the development of oil, natural gas, or minerals to disclose the information annually by filing a new form with the SEC called Form SD.

Read the SEC press release

CFTC Approves Conforming Amendments to Regulations of Commodity Pool Operations and Commodity Trading Advisors

On Thursday, August 23, 2012, the CFTC approved final conforming amendments to Part 4 of its regulations, which govern the operations and activities of commodity pool operators ("CPOs") and commodity trading advisors ("CTAs"). These amendments reflect changes made to the CEA by Title VII of the Dodd-Frank Act.

Title VII broadened the CPO and CTA definitions in the CEA to include swap-related activity. The final amendments conform Part 4 to these changes by requiring CPOs and CTAs to include information on swap intermediaries and activities under the disclosure, reporting and recordkeeping requirements of Part 4. Under these final regulations, CPOs and CTA will be subject to the same regulatory structure for both their futures and swaps activities

Read the CFTC press release

CFTC Issues Final Rules Establishing Swap Dealer and Major Swap Participant Requirements for Swap Trading Relationship Documentation, Swap Confirmation, Reconciliation and Compression of Swap Portfolios

On Monday, August 27, 2012, the CFTC approved final rules to improve the risk management procedures of swap dealers and major swap participants. These rules are adopted pursuant to Section 4s(i) of the CEA, enacted by Section 731 of the Dodd-Frank Act. Section 731 requires the CFTC to prescribe standards for swap dealers and major swap participants related to the timely and accurate confirmation, processing, netting, documentation, and valuation of swaps.

Read the CFTC press release

OCC, FDIC, and Fed Consider Delay in the Implementing Timeline for Annual Stress Testing

On Monday, August 27, 2012, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation each separately announced they are considering changes to the implementation timeline for the company-run stress testing required by Section 165 of the Dodd-Frank Act. The changes under consideration would delay implementation until September 2013 for covered institutions with total consolidated assets between $10 billion and $50 billion.

Read the OCC press release

Read the Fed press release

Read the FDIC press release

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Perkins Coie | Attorney Advertising

Written by:

Perkins Coie
Contact
more
less

Perkins Coie on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!