Financial Services Bulletin: Action At The CFTC And CFPB

by Perkins Coie

CFTC Proposes Registered Futures Association Membership Rules

On Friday, November 8, 2013, the Commodity Futures Trading Commission (the "CFTC") proposed amending its regulations to require that all persons registered with the CFTC as introducing brokers, commodity pool operators, and commodity trading advisors must become and remain members of at least one registered futures association.  This regulation is proposed pursuant to Section 8(a)(5) of the Commodity Exchange Act (the "CEA").

Read the proposed CFTC rules

CFTC Adopts Final Futures Commission Merchants Rules

On Thursday, November 14, 2013, the CFTC adopted new regulations and amended existing regulations to require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures, and auditing and examination programs for futures commission merchants ("FCMs").  The rules are adopted pursuant to Sections 4d(a)(2) and 4d(f) of the CEA, as amended by Section 724(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").

The final rules require increased protections for customer segregated funds, secured amount funds, and cleared swaps funds.  In addition, the final rules require that customers are provided with greater notice of the risks of futures trading and the risks related to the FCMs with which they may choose to do business.  The final rules also seek to ensure that FCMs are monitoring and managing risks in a robust manner, and that the capital and liquidity of FCMs are strengthened to safeguard their continued operations.  Finally, the rules require the auditing and examination programs of the CFTC and self-regulatory organizations to monitor the activities of FCMs in a prudent and thorough manner.

Read the CFTC rules

CFTC Issues Final Derivatives Clearing Organizations Rules

On Friday, November 15, 2013, the CFTC finalized rules to establish standards for systemically important derivatives clearing organizations ("SIDCOs").  The CFTC passed these rules pursuant to Section 5b(c)(2) of the CEA, as amended by Section 725(c) of the Dodd-Frank Act.

Together with existing rules, these rules establish CFTC regulations that are consistent with the Principles for Financial Market Infrastructures published by the Committee on Payment and Settlement Systems and the Board of the International Organization of Securities Commissions.  The rules allow SIDCOs to continue to be considered Qualifying Central Counterparties ("QCCs") under international bank capital standards.  These standards allow banks to incur lower capital charges for derivatives cleared through QCCs.

The final rules include requirements relating to a number of areas of standards for SIDCOs, including governance, financial resources, system safeguards, special default rules, risk management, disclosure requirements, efficiency, and recovery and wind-down procedures.  Furthermore, the final rules include procedures by which derivatives clearing organizations other than SIDCOs may elect to become subject to these additional standards.

Read the CFTC press release

Read the CFTC rules

CFPB Issues Final Mortgage Disclosure Rules

On Wednesday, November 20, 2013, the Consumer Financial Protection Bureau (the "CFPB") issued final rules pursuant to Sections 1098 and 1100A of the Dodd-Frank Act.  The final rules amend Regulation X (Real Estate Settlement Procedures Act) and Regulation Z (Truth In Lending Act), establishing new disclosure requirements and forms for most consumer credit transactions secured by real property.  In addition, the final rules provide comprehensive guidance regarding compliance with the disclosure requirements.

Read the CFPB press release

Read the CFPB rules

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

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.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

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.


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 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:

- 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.