Anne M. Termine

Anne M. Termine

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CFTC News Roundup for October and November and a Look Ahead

There has been a flurry of activity at the Commodity Futures Trading Commission (“CFTC”) in recent weeks.  As we reported previously, the CFTC approved three final rules, including the much-anticipated position limits rule, at its October 15 open meeting, and announced significant organizational changes to its operating divisions on November 3.  This post highlights additional … Continue Reading

CFTC Announces Organizational Changes to Agency Divisions

On November 2, 2020, the U.S. Commodity Futures Trading Commission (CFTC) issued a press release announcing organizational changes to several areas of the agency’s operating divisions. According to CFTC Chairman Heath P. Tarbert, these changes are intended to better align the agency’s structure with its strategic objectives.… Continue Reading

CFTC Approves Three Final Rules at Open Meeting

At an open meeting on October 15, 2020, the Commodity Futures Trading Commission (“CFTC” or the “Commission”) voted to adopt three final rules.  First, the Commission adopted by a 3–2 vote a final rule overhauling its regulatory framework governing speculative position limits on a large variety of commodities.  Second, the Commission unanimously approved amendments to … Continue Reading

CFTC To Consider Proposals for Refining Uncleared Margin Rules

During an open meeting on July 22, 2020, the CFTC Commissioners heard a staff presentation on three specific recommendations for changes to the margin requirements for uncleared swaps for swap dealers and major swap participants.  These changes would: Align the timing and methodology for both the material swaps exposure calculations and the post phase‐in compliance … Continue Reading

CFTC Adopts Final Rules on Capital Requirements and Cross-Border Application of the Registration Thresholds for Swap Dealers and Major Swap Participants

At open meetings on Wednesday, July 22, and Thursday, July 23, the CFTC approved, by a 3-2 vote, two significant final rules implementing provisions in the Dodd-Frank Act.  The first rule imposes capital requirements on swap dealers (“SDs”) and major swap participants (“MSPs”) that are not subject to supervision by a banking regulator, as well … Continue Reading

CFTC’s Civil Monetary Penalty Guidance: A Perspective from a Former CFTC Regulator

On May 20th the U.S. Commodities Futures Trading Commission (the “CFTC”) Division of Enforcement (the “Division”) announced new guidance for Division staff to consider when recommending civil monetary penalties in an enforcement action (the “CMP Guidance” or the “Guidance”).  As a former CFTC regulator who brought dozens of cases over a 13 year career in … Continue Reading

CFTC Approves Both Interim Final Rule and a Proposed Rule and Extends No-Action Relief in Response to Covid-19

On May 28, 2020, the Commodity Futures Trading Commission (CFTC) unanimously approved an interim final rule in order to grant an extension of the compliance schedule for uncleared swaps in response to the many operational challenges entities are facing in the wake of the COVID-19 (coronavirus) pandemic. It also approved a proposed rule exempting certain … Continue Reading

CFTC Extends Certain Comment Periods for Pending Proposed Rules in Response to Covid-19

On April 10, 2020 the Commodity Futures Trading Commission ( the “CFTC” or the “Commission”) extended certain currently-open comment periods for several pending proposed rules in light of the COVID-19 pandemic.  The Commission completed voting to adopt the relatively short extensions on Thursday, April 9.  The measure passed by a final tally of 3-2, with … Continue Reading

CFTC Announces Fourth Wave of No-Action Relief in Response to COVID-19

On March 31, 2020, the Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight (DSIO) announced the release of a targeted, temporary no-action letter aimed at foreign affiliates of futures commission merchants (FCMs).  This relief is meant to ease regulatory burdens in the face of the global COVID-19 pandemic.  In short, the … Continue Reading

CFTC Warns of Fraudsters Capitalizing on Investors’ COVID-19 Concerns and Promises Aggressive Enforcement Action

On March 18, the Commodity Futures Trading Commission (“CFTC”) issued a Customer Advisory cautioning the public to be on alert for increased fraudulent activity amidst the COVID-19 pandemic. The agency’s alert followed a series of similar warnings published by other agencies. The CFTC advised that fraudsters may be attempting to profit by taking advantage of … Continue Reading

Leaders of the SEC, CFTC, and FinCEN Issue Joint Statement Emphasizing AML Obligations for Digital Asset Activities

On Friday, the leaders of the Securities and Exchange Commission (“SEC”), Commodity Futures Trading Commission (“CFTC”), and Financial Crimes Enforcement Network (“FinCEN”) (collectively, the “Agencies”) issued a “Joint Statement on Activities Involving Digital Assets” (the “Joint Statement”).  The Joint Statement serves as a reminder that businesses engaged in activities involving digital assets – or, as … Continue Reading

CFTC Becomes Third Federal Financial Regulator to Approve Volcker Rule Reforms

On Monday, September 16, the Commodity Futures Trading Commission (the “CFTC” or the “Commission”) announced that it has approved final regulations (the “final rule”) that will streamline and clarify the Volcker Rule – a statutory provision that generally prohibits banking entities from engaging in proprietary trading, or from taking an ownership interest in, sponsoring, or … Continue Reading

CFTC Settles Wheat Manipulation Case against Kraft and Mondelēz

On August 14, 2019, the U.S. District Court for the Northern District of Illinois entered a consent order (the “Consent Order”)—agreed to by the U.S. Commodity Futures Trading Commission (the “CFTC”), Kraft Foods Group Inc. (“Kraft”) and Mondelēz Global LLC (“Mondelēz”)—to resolve long-running market manipulation litigation between the parties.… Continue Reading

CFTC Issues Report on Automated Futures Orders

On Wednesday, March 27, 2019, the CFTC’s Market Intelligence Branch of the Division of Market Oversight issued a report on the impact of automated orders in futures markets to determine how technological change affects futures trading. Automated trading refers to orders that are generated or routed without human intervention. The CFTC presented the report before … Continue Reading

CFTC Announces 2019 Examination Priorities for the First Time

On February 12, 2019, for the first time in its history, the Commodity Futures Trading Commission (“CFTC”) announced the release of 2019 examination priorities for each of its regulatory Divisions.  CFTC Chairman J. Christopher Giancarlo stated that “[t]his first-ever publication of division examination priorities is in line with Project KISS and other agency initiatives to … Continue Reading

The Latest Brexit Chaos: What Does it Mean for Derivatives Markets?

The past few weeks have been chaotic for both Brexit negotiations and U.K. politics overall. On January 15, 2019, British Prime Minister Theresa May’s Brexit plan succumbed to historic defeat in Parliament. Brexit watchers expected a defeat but the record margin of 432 votes against, and 202 votes for, was still shocking. On January 16, … Continue Reading

CFTC and Monetary Authority of Singapore Sign Cooperation Agreement on FinTech Innovation

Late last week, the Commodities Futures Trading Commission (CFTC) and the Monetary Authority of Singapore (MAS) announced a cooperation agreement on FinTech innovation.  The agreement is principally focused on information sharing on FinTech trends and developments and on each regulator’s FinTech sandboxes. The agreement could also, however, help FinTech companies move more easily between the … Continue Reading

The CFTC’s Active Week: Virtual Currencies in Focus

This past week has been an especially active one for the U.S. Commodity Futures Trading Commission (CFTC). On Monday, in a speech to the North American Securities Administrators Association (NASAA), CFTC Chairman Giancarlo announced a Memorandum of Understanding (MOU) to increase cooperation between state securities regulators and the CFTC — particularly with respect to prosecuting … Continue Reading

CFTC Enforcement and Regulatory Report: 2017 Activity and Outlook

The U.S. Commodity Futures Trading Commission (the “CFTC” or the “Commission”) has been very active since the beginning of this year, despite the change in Presidential Administration, the lack (until recently) of appointed Commissioners, and the turnover of leadership at both the Commission and Division level.  Notably, the Commission has announced over 20 enforcement actions, … Continue Reading

CFTC Adopts Amendments to Whistleblower Rule, Asserts Anti-Retaliation Authority

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the finalization of amendments to its whistleblower rules.  The most important change is the CFTC’s assertion of the authority to enforce Section 23(h)(1) of the Commodity Exchange Act (“CEA”), which prohibits retaliation against whistleblowers.  When it originally promulgated its whistleblower rules in 2011, the … Continue Reading

CFTC Launches FinTech Initiative “LabCFTC”

On May 17, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the launch of its financial technology (“FinTech”) initiative, LabCFTC.  Per the agency, the initiative is designed to “promot[e] responsible FinTech innovation to improve the quality, resiliency, and competitiveness of the markets the CFTC oversees.”  According to Acting Chair J. Christopher Giancarlo, LabCFTC is “intended … Continue Reading

CFTC Will Have Enhanced Enforcement Powered by In-House Market Surveillance

CFTC Acting Chairman Chris Giancarlo recently announced some organizational changes within the CFTC’s Divisions that will enhance the agency’s ability to investigate market abuse. Further, Acting Chairman Giancarlo recently announced the appointment of federal prosecutor James M. McDonald as the agency’s new Director of Enforcement. Covington’s Futures and Derivatives group provides our initial thoughts on … Continue Reading

CFTC Settles Allegations that Dairy Company Acted as FCM for Milk Suppliers

On March 27, 2017, the Commodity Futures Trading Commission (“CFTC”) announced it entered into a consent order with Davisco Foods International, Inc. (“Davisco”), a dairy company, to settle allegations that Davisco acted as a futures commission merchant (“FCM”) for its milk suppliers without registering as an FCM.  Section 4d of the Commodity Exchange Act defines … Continue Reading
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