CFTC Issues Proposed Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps

On August 19, The U.S. Commodity Futures Trading Commission (CFTC) proposed amendments to existing rules relating to swap data reporting in connection with cleared swaps. The amendments are aimed at providing additional clarity to swap counterparties and registered entities regarding their reporting obligations and improving efficiency of data collection and maintenance associated with the reporting. The comment period for the proposed amendments will be 60 days after publication in the Federal Register.  Press Release.  Rule.

Treasury Extends Comment Period on Marketplace Lenders RFI

On August 18, the Treasury Department extended the comment period for responding to the Request for Information (RFI) on marketplace lending titled "Public Input on Expanding Access to Credit through Online Marketplace Lending" by 30 days. The comment period will now end on September 30, 2015.  Treasury Note.

CFTC Issues Its First Ever Order of Exemption from Registration as a Derivatives Clearing Organization

On August 18, CFTC issued an order of exemption from registration as a derivative clearing organization (DCO) to ASX Clear (Futures) Pty Limited (ASX). The order is the first of its kind issued by CFTC based on its authority under Section 5b(h) of the Commodity Exchange Act. The provision permits CFTC to exempt a clearing organization from DCO registration if it determines that such organization is subject to comparable and comprehensive supervision by appropriate government authorities in the organization's home country.  Press Release.

CFTC Extends No-Action Relief on the Applicability of Transaction-Level Requirements for Non-U.S. Swap Dealers

On August 13, 2015, CFTC Division of Swap Dealer and Intermediary Oversight, Clearing and Risk, and Market Oversight extended a time-limited no-action relief to swap dealers registered with the CFTC that are established under the laws of jurisdictions other than the United States for certain transaction-level requirements under the Commodity Exchange Act. Subject to certain limitations, the relief has now been extended until the earlier of September 30, 2016 or the effective date of any CFTC action with respect to applicability of the transaction-level requirements in certain situations specified in the no-action letter.  Press Release.  No Action Letter.

On August 18, Moody's extended comment period on proposed clearing house global rating methodology to September 17, 2015.  Announcement.

On August 17, Fitch released its updated corporate rating methodology.  Methodology.

On August 13, DBRS published its updated methodology for rating project finance.  Methodology.

On August 13, DBRS published its updated methodology for rating companies in the independent power producer industry.  Methodology.

FDIC Sues BNY Mellon For Alleged Failure As Trustee of RMBS

On August 19, 2015, the Federal Deposit Insurance Corp., acting as receiver for Guaranty Bank, filed suit against Bank of New York Mellon Corp. in New York federal court, alleging that BNY breached its duties as trustee of 12 RMBS trusts that issued approximately $2 billion in certificates.  The trusts were sponsored by Countrywide Home Loans and EMC Mortgage Corp.  The FDIC alleges that BNY breached its contractual obligations by failing to provide notice of representation and warranty violations and demand Countrywide and EMC to replace or buy back the noncompliant loans, provided false regulatory certifications and remittance reports, and failed to take possession of complete mortgage files.  The FDIC asserts claims for breach of contract, the federal Trust Indenture Act, and the New York Streit Act.  Complaint.

New York Appellate Court Upholds ACA's Fraud Suit Against Goldman Sachs

On August 18, 2015, the New York Appellate Division's First Department held that ACA Financial Guaranty Corp. adequately pled its fraud suit against Goldman Sachs Group Inc.  A four-judge panel held that ACA sufficiently alleged that Goldman Sachs' allegedly false statements about hedge fund Paulson & Co.'s short position on the Abacus collateralized debt obligation transaction were material, that the statements were made with the requisite intent, and that ACA would not have provided the financial guaranty for the deal had it known the truth.  The case had been remanded from the New York Court of Appeals, which had overturned the First Department's prior decision to grant Goldman Sachs' motion to dismiss.  Order.

Union Pension Fund Requests Approval of Settlement With Goldman Sachs in RMBS Litigation

On August 13, 2015, union pension fund NECA-IBEW Health & Welfare ("NECA") and the Police and Fire Retirement Systems of the City of Detroit ("PFRS"), acting on behalf of proposed classes of institutional and individual investors, requested preliminary approval for a $272 million settlement with Goldman Sachs Group Inc.  The proposed settlement would conclude lawsuits in which NECA and PFRS alleged that Goldman Sachs had made numerous misstatements about the loans underlying $6 billion in RMBS offerings.  Stipulation and Agreement of Settlement.  Memorandum ISO Preliminary Approval.

CPMI and IOSCO Consult on Harmonizing Unique Transaction Identifier

On August 19, 2015, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report on harmonization of the unique transaction identifier (UTI).

The report is the CPMI-IOSCO Harmonization Group's initial response to its mandate from the Financial Stability Board (FSB) to address the harmonization of the UTI by producing guidance in this area. The group's objective is to produce clear guidance as to the UTI definition, format and usage that meets the needs of UTI users, is global in scale, and is "jurisdiction agnostic". This will enable the consistent global aggregation of over-the-counter (OTC) derivatives transaction data.

The key points considered in the report include:

• The OTC derivatives transactions that should be assigned a UTI.
• The entity or entities that should be responsible for generating UTIs in practice.
• What the structure and format of a UTI should be.
• The steps that would help to ensure that UTIs generated under the new guidance are distinct (to the extent necessary to achieve aggregation) from those UTIs generated under existing regimes.

The G20 leaders agreed in 2009 that OTC derivatives contracts should be reported to trade repositories (TRs) as part of their commitment to reform OTC derivatives markets by improving transparency, mitigating systemic risk and protecting against market abuse. Aggregation of the data reported across TRs is necessary to help ensure that authorities are able to obtain a comprehensive view of the OTC derivatives market and activity.

European Commission Call For Advice From EBA on Net Stable Funding Requirements and Leverage Ratio

On August 19, 2015, the European Banking Authority (EBA) published a call for advice (dated 26 June 2015) it has received from the European Commission on the EBA's reports on net stable funding requirements (NSFR) and leverage ratio (LR) required under the Capital Requirements Regulation (Regulation 575/2013) (CRR).

The purpose of these reports is to assist the Commission in its own work preparing reports on the NSFR and the LR, and potentially legislative proposals, for the European Parliament and the Council of the EU.

In the call for advice, the Commission seeks the EBA's technical advice on specific issues relating to:

• Proportionality. The Commission asks the EBA to consider simplified LR and NSFR reporting requirements and different NSFR calibrations for certain firms.
• Scope of application. The Commission asks the EBA to consider whether certain types of credit institution should be fully excluded from the LR and NSFR.
• Impact of the NSFR on certain markets and activities. The Commission asks the EBA to examine the impact of the NSFR on issues including bank lending, the volume and liquidity of financial markets and business models.