With some frequency, Katten attorneys field questions from clients about exchange rules on off-exchange execution of futures and options on futures. This Advisory provides a high-level overview on this topic in connection...more
Three CFTC-Regulated Exchanges Self-Certify Bitcoin Derivatives Contracts: On December 1, three exchanges regulated by the Commodity Futures Trading Commission self-certified new cash-settled derivatives contracts based on...more
Trading Firm and Broker Affiliate Settle CFTC Enforcement Action for Trading Firm’s Alleged EFRP Transactions With Insufficiently Correlated Futures and Physical Legs: FCStone Merchant Services LLC and INTL FCStone Financial...more
CFTC Issues ABC’s on Virtual Currencies – Actually the Bitcoin, Ether and Ripple: Last week, the Commodity Futures Trading Commission’s LabCFTC issued a helpful overview of digital currencies, discussing what a virtual...more
Non-Member Sanctioned by NYMEX Business Conduct Committee for Non-Bona Fide EFRPs; Can’t Shift Blame to Broker or FCM Despite Try: Bunkerbridge PTE Ltd, a non-member of the New York Mercantile Exchange, was fined US $30,000...more
January 2017 - The last several years have seen law enforcement and regulatory bodies sharpen their focus on trading activity in the securities and derivatives markets. This focus has coincided with the advent of new and...more
Advantage Futures LLC, Joseph Guinan, its majority owner and chief executive officer, and William Steele, who until May 2016 was Advantage’s chief risk officer, settled charges brought by the Commodity Futures Trading...more
NFA Proposes Requiring CTAs and CPOs to File Certain Financial Ratio Information: The National Futures Association submitted to the Commodity Futures Trading Commission for its approval a new requirement that would mandate...more
CME Group Proposes New Clearing Member Category to Help Customers Avoid Pro Rata Distribution Risk in Case of FCM Insolvency: CME Group filed proposed rule changes with the Commodity Futures Trading Commission that would...more
CFTC Hosts Regulation AT Roundtable; Chairman Implies Risk Rules Sufficient for 2016: Staff of the Commodity Futures Trading Commission sponsored a roundtable on proposed Regulation Automated Trading last Friday. The...more
Broker-Dealer Sanctioned by SEC for Anti-Money Laundering Breakdowns: Albert Fried & Company, LLC, a Securities and Exchange Commission-registered broker-dealer, agreed to pay a fine of US $300,000 to resolve charges by the...more
GAO Claims US Financial Services Regulation Still Complex and Fragmented - Last week, the US Government Accountability Office reported that US oversight of financial services entities and products has not meaningfully...more
Effective February 23, 2016, ICE Futures U.S., Inc. (“ICE” or “Exchange”) issued a revised Wash Trade Frequently Asked Questions (“ICE FAQ”). This ICE FAQ replaces a 2009 ICE Wash Trade FAQ and provides additional guidance...more
Bah Humbug—CME Group Fines Firms for Inadequate Documentation of EFRPs; Additional Firms Cited for Pre-Hedging Block Trades and Other Violations by CME Group and IFUS - Chicago Mercantile Exchange Group exchanges and ICE...more
Manipulation Is Not Hedging Says CFTC in Federal Court Lawsuit Against Kraft Foods Group and Mondelez Global - The Commodity Futures Trading Commission filed a lawsuit against Kraft Foods Group, Inc. and Mondelez...more
CME Group Reminds Members of Regulatory Requirements for EFRPs and Block Trades Through Disciplinary Actions: The CME Group brought and resolved multiple disciplinary actions against various members and non-members related to...more
On August 8, ICE Futures U.S. revised its rule and frequently asked questions related to exchange of futures for related position (EFRP) transactions. The amendments codify the requirements regarding the simultaneous transfer...more