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
CFTC Issues Primer on Smart Contracts
The CFTC’s LabCFTC recently released “A Primer on Smart Contracts” as part of LabCFTC’s initiative to engage with stakeholders on FinTech topics. The primer explains smart contracts, and explores their potential benefits — with a particular focus on the financial sector — and challenges. The CFTC has an interest in smart contracts because,
Another Federal Court Rules That Virtual Currency Is a Commodity
Last week, in a denial of a motion to dismiss, a Massachusetts district court ruled that virtual currencies are commodities under the Commodity Exchange Act (the “CEA”) and that therefore the CFTC has authority to prosecute fraud with respect to virtual currencies (see CFTC v. My Big Coin Pay, Inc., No. 18-10077-RWZ, 2018
Hiring of Administrative Law Judges to Change
A recent United States Supreme Court case and new executive order will change the way federal agencies hire administrative law judges (“ALJs”), and together are expected to increase ALJs’ accountability to the heads of their agencies. On June 21, 2018, the United States Supreme Court held in Lucia v. Securities and Exchange Commission that the
CFTC Issues Advisory Regarding Virtual Currency Derivatives
Earlier this week, the CFTC published a staff advisory regarding virtual currency derivative product listings. The guidance sets forth five areas of focus for exchanges and clearinghouses in listing a new virtual currency derivatives contract pursuant to Commission Regulation 40.2 or 40.3, including: (1) enhanced market surveillance, (2) coordination with CFTC staff, (3) large trader
Office of the Comptroller of the Currency Encourages Banks to Meet Consumer’s Needs for Short-Term, Small-Dollar Credit; BCFP Voices Approval
Yesterday, the Office of the Comptroller of the Currency issued a bulletin encouraging national banks and federal savings associations to make short-term, small-dollar installment loans that are both safe and affordable available to consumers.
The bulletin observes that despite the need, many banks have withdrawn from this market, forcing consumers to turn to non-bank lenders.
Cboe Contributes to Ongoing Discussion Regarding Cryptocurrency ETPs
Last month, Cboe Global Markets, Inc. (“Cboe”) responded to a staff letter on cryptocurrency funds and related investment products published by the SEC earlier this year.
The SEC staff letter recognized that proponents of cryptocurrencies have identified a range of potential benefits and that innovation is important, but the SEC also identified a number of
Arizona Creates Sandbox Program for Fintech
Arizona recently became the first state in the U.S. to create a “regulatory sandbox” program to facilitate the development of innovative financial products and services, which either incorporate new or emerging technology or reimagine uses of existing technology. Arizona H.B. 2434 requires the State Attorney General to establish a sandbox program to which entrepreneurs may
U.S. Copyright Protections for Market Data
Data is of particular importance to businesses in the financial sector. This blog post provides a high level overview of how United States copyright law treats data.
U.S. copyright protection for raw, unstructured data is generally regarded as thin or unavailable. The reason for this is that such raw data may not satisfy the creativity
New York State Department of Financial Services Issues Guidance on Fraud and Market Manipulation in Virtual Currency Markets
On February 7, 2018, the New York State Department of Financial Services (“DFS”) issued guidance for all virtual currency business entities (“VCBEs”) regarding the prevention of market manipulation and other wrongful activity. In a brief, two-page document, the DFS: (1) emphasized the importance of effectively preventing and responding to fraud and similar wrongdoing; (2) stated