Anne M. Termine

Anne M. Termine

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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

Trump Administration to nominate J. Christopher Giancarlo to serve as CFTC Chairman

On March 14, 2017, the White House announced that President Donald Trump intends to nominate J. Christopher Giancarlo, currently Acting Chairman of the Commodity Futures Trading Commission (“CFTC”), to serve as the CFTC’s permanent Chairman, subject to confirmation by the Senate. Acting Chairman Giancarlo joined the CFTC as a commissioner in 2014, and was named … Continue Reading

CME Adopts Rule Changes Regarding Offenses

CME has issued a Special Executive Report listing out amendments to Rule 432 (General Offenses) of the CME, CBOT, NYMEX, COMEX, and CME SEF rulebooks. These amendments are aimed at specifically prohibiting: attempted fraudulent or bad faith actions; the intentional or reckless use or attempted use of a manipulative device, scheme or artifice to defraud; … Continue Reading

CFTC Issues No-Action Relief for Swap Dealers who Comply with EU Uncleared Swap Requirements

On February 1, 2017, the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“CFTC”) issued a no-action letter granting relief from compliance with certain provisions of the CFTC’s margin requirements for uncleared swaps.  This relief applies to swap dealers entering into swaps with counterparties subject to the non-centrally cleared … Continue Reading

CFTC Acting Chairman Giancarlo Appoints Amir Zaidi as Director of the Division of Market Oversight

On Friday January 27, CFTC Acting Chairman announced a series of staff changes at the CFTC, including the appointment of Amir Zaidi to lead the CFTC’s Division of Market Oversight (“DMO”). Mr. Zaidi has served in a number of roles at the Commission since he joined in 2010. Most recently, he was Legal Counsel and … Continue Reading

CFTC Extends Public Comment Period for the Supplemental Proposal for Regulation Automated Trading

The CFTC announced today that it will extend the comment period for the supplemental proposal for Regulation AT until May 1, 2017. This is in keeping with Acting Chairman Giancarlo’s remark during SEFCON VII earlier this month, when he pointed out that an extension was warranted “based on the complexity of the supplemental notice and … Continue Reading

CFTC Commissioner Giancarlo Forecasts Swap Market Reforms

On January 18, 2017, Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo delivered a keynote address at SEFCON VII in which he gave an indication of the types of reforms in the swap markets he plans to implement as Acting Chair and, if nominated and confirmed, as permanent Chair.  His comments echoed a theme … Continue Reading

Massad to Step Down as CFTC Chairman

On January 3, 2017, Timothy G. Massad announced that he will step down as chairman of the Commodity Futures Trading Commission (“CFTC” or “Commission”) on Inauguration Day, January 20, 2017.  Chairman Massad’s announcement also notes that he will also step down as a Commissioner after a few weeks. President Barack Obama nominated Chairman Massad to … Continue Reading

CFTC Proposes Capital Rules for Swap Dealers and Major Swap Participants

On December 2, 2016, the Commodity Futures Trading Commission (“CFTC”) proposed rules establishing capital requirements for swap dealers (“SDs”) and major swap participants (“MSPs”). The CFTC’s proposed capital rules would cover those swap dealers and major swap participants that are not subject to prudential regulation. Chairman Timothy Massad noted in his attached statement that the … Continue Reading

CME Implements Significant Penalty Increases for Futures and Swaps Trading Violations

Effective December 14, 2016, and subject to CFTC regulatory review periods, the Chicago Mercantile Exchange Inc., The Board of Trade of the City of Chicago, Inc., New York Mercantile Exchange, Inc., Commodity Exchange, Inc. and the Swap Execution Facility Division of Chicago Mercantile Exchange Inc. have adopted amendments to the rulebooks of their respective platforms. … Continue Reading

CFTC Commissioner Giancarlo Delivers Speech Urging Regulatory Reform

On December 9, 2016, Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo delivered the keynote address at the International Swaps and Derivatives Association Trade Execution Legal Forum.  His address included a strong rebuke of the CFTC’s swaps trading regime, stating that the “time has come for the CFTC to revisit its flawed swaps trading … Continue Reading

Pre-trial Briefing: CFTC v. Wilson and the Requirement of Intent to Cause an Artificial Price in Attempted Manipulation Cases

The Commodity Futures Trading Commission is set to begin its trial of Donald R. Wilson and his proprietary trading firm, DRW Investments, LLC on December 1, 2016.  In advance of this trial, this alert provides the legal theory that will be tested during this trial and other observations related to the CFTC’s pursuit of attempted … Continue Reading

“Flash Crash” Derivatives Trader Settles Spoofing Case

On November 17, 2016, a federal court entered a consent order that will settle the civil case the Commodity Futures Trading Commission (“CFTC”) brought against Navinder Singh Sarao and his company, Nav Sarao Futures Limited PLC, for engaging in a “spoofing” scheme and manipulating the price of the Chicago Mercantile Exchange’s E-mini S&P 500 futures … Continue Reading
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