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Tag: us commodity futures trading commission

CFTC News: Rostin Behnam Named as Acting Chairman
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CFTC News: Rostin Behnam Named as Acting Chairman

Washington, DC (STL.News) The Commodity Futures Trading Commission announced that the members of the Commission have unanimously elected Commissioner Rostin Behnam as Acting Chairman effective immediately. Acting Chairman Behnam succeeds Heath P. Tarbert who served as Chairman since July 15, 2019, and announced his departure from the role earlier today.  Mr. Tarbert remains a Commissioner, serving a term expiring on April 13, 2024. “I want to express gratitude to President Biden for the opportunity to serve in this capacity,” said Acting Chairman Behnam.  “The work of the CFTC is critical to supporting the stability and growth of the American economy through strong oversight and regulation of derivatives markets.  As a commissioner, I have focused on ensuring our rules prioritize cus...
Summer Mersinger – Join Commissioner Stump’s Office as Chief of Staff
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Summer Mersinger – Join Commissioner Stump’s Office as Chief of Staff

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that Summer K. Mersinger, Director of the Office of Legislative and Intergovernmental Affairs (OLIA), will transition to the Office of Commissioner Dawn D. Stump where she will serve as Chief of Staff.  OLIA Deputy Director Ann Wright will assume the role of Acting Director following Ms. Mersinger’s transition into her new role. Prior to joining the CFTC in 2019, Ms. Mersinger spent more than 15 years working on Capitol Hill for Congressman and then Senator John Thune of her home state of South Dakota.  She also worked as a government affairs professional with the Smith-Free Group.  Ms. Mersinger holds a bachelor’s degree in political science from the University of Minnesota.  She earned her juris doctor ...
CFTC Approves NFA’s Swap Dealer Capital Model Review Program
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CFTC Approves NFA’s Swap Dealer Capital Model Review Program

Washington, DC (STL.News) The Commodity Futures Trading Commission’s Market Participants Division through delegated authority has determined the National Futures Association’s (NFA) swap dealer capital model requirements and review program are comparable with the CFTC’s swap dealer capital model requirements and review program.  Accordingly, a capital model approved by the NFA will be accepted as an alternative means of compliance with CFTC Regulation 23.102. This regulation permits a swap dealer to apply to the CFTC, or to a registered futures association, to obtain approval to use internal market risk and/or credit risk models in computing the swap dealer’s regulatory capital.  The regulation further requires the CFTC to determine whether NFA’s model requirements and review process ar...
CFTC General Counsel Dan Davis to Depart Agency on January 15
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CFTC General Counsel Dan Davis to Depart Agency on January 15

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that Daniel J. Davis, the CFTC’s General Counsel and head of the Legal Division, will depart the agency on January 15, 2021 for a role in the private sector.  Mr. Davis has served as General Counsel since joining the agency in March 2017. “When I recommended Dan for this role, I knew he would be the ideal General Counsel for this agency. He has more than met that high bar, displaying his wide range of incredible talents in advising the Commission over the past four years,” said CFTC Chairman Heath P. Tarbert.  “He has been the steady hand in reviewing the agency’s rulemakings and enforcement actions, managing the appellate docket, and providing wise counsel on legislative and general law issues.  He helme...
CFTC and ESMA Sign Enhanced Memorandum of Understanding
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CFTC and ESMA Sign Enhanced Memorandum of Understanding

Washington, DC (STL.News) The Commodity Futures Trading Commission (CFTC) and the European Securities and Markets Authority (ESMA) today announced the signing of a new Memorandum of Understanding (MOU) regarding cooperation and the exchange of information with respect to certain registered derivatives clearing organizations established in the United States that are central counterparties (CCPs) recognized by ESMA under the European Market Infrastructure Regulation (EMIR). Through the MOU, ESMA and the CFTC express their desire for enhanced cooperation as to the larger U.S. CCPs operating in the European Union with provisions that expand upon the collaboration set out in the 2016 CFTC-ESMA MOU related to recognized CCPs.  The MOU reflects ESMA’s and the CFTC’s commitment to strengthening...
CFTC Review – RSBIX NFL Futures Contracts
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CFTC Review – RSBIX NFL Futures Contracts

Washington, D.C. (STL.News) The Commodity Futures Trading Commission today announced it has initiated a review, pursuant to CFTC Regulation 40.11(c), of RSBIX NFL futures contracts self-certified by Eris Exchange, LLC (ErisX) on December 15, 2020.  ErisX self-certified three RSBIX NFL futures contracts: one based on the moneyline; the second on the point spread; and the third on total points for individual NFL games.  Beginning today, the CFTC has 90 days—or longer as agreed to or requested by ErisX—to review and make a determination with respect to the submissions. The review follows a Commission determination that the RSBIX NFL futures contracts “may involve, relate to, or reference” an activity enumerated in Regulation 40.11(a)(1), including but not limited to “gaming, or an activity...
CFTC Staff Releases Position Limits Workbook
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CFTC Staff Releases Position Limits Workbook

CFTC Staff Releases Position Limits Workbook to Provide Clarity to Market Participants Washington, DC (STL.News) The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) Tuesday released a staff workbook to provide guidance to market participants on which exchange-traded futures contracts would be subject to the position limits rule the Commission approved in October. [See CFTC Press Release No. 8287-20] “DMO is providing this workbook to market participants to promote transparent regulation of the derivatives markets,” said DMO Director Dorothy DeWitt. “DMO staff has worked extensively with our exchanges to identify the right set of contracts that are referenced futures contracts under our new position limits rule.” The staff workbook provides a list of the cor...
CFTC Grants OneChicago LLC Request to Vacate DCM Designation
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CFTC Grants OneChicago LLC Request to Vacate DCM Designation

Washington, DC (STL.News) The Commodity Futures Trading Commission Monday issued an order vacating the designation of OneChicago LLC as a designated contract market (DCM).  The order was issued at the request of OneChicago.  The CFTC granted OneChicago its designation as a contract market on June 11, 2002. The Commodity Exchange Act and CFTC regulations state a DCM may request its designation be vacated by filing a request with the CFTC at least 90 days prior to the requested date of vacation.  Per OneChicago’s request, the order revokes OneChicago’s designation effective today. With the vacation of OneChicago’s designation as a DCM there will be 16 DCMs registered with the CFTC.
CFTC,s Chief of Staff, COO, Jaime Klima to Depart Agency in January
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CFTC,s Chief of Staff, COO, Jaime Klima to Depart Agency in January

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that Jaime L. Klima, the CFTC’s Chief of Staff and Chief Operating Officer, will depart the agency for a role in the private sector next month.  Ms. Klima has served in her executive leadership role since joining the agency in July 2019, where in addition to being the lead advisor to Chairman and Chief Executive Heath P. Tarbert on legal, policy, and administrative matters, she has been responsible for managing the daily operations of the agency and overseeing its nearly 1,000 personnel. “Jaime is a Team Tarbert original, having been with my office from the very beginning of my tenure at the CFTC. From our historic rule-making and enforcement agenda to our efforts to enhance the agency’s culture and opera...
CFTC and CONSOB Sign MOU for Supervision of Cross-Border Firms
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CFTC and CONSOB Sign MOU for Supervision of Cross-Border Firms

Washington, DC (STL.News) The Commodity Futures Trading Commission and the Commissione Nazionale per le Società e la Borsa (CONSOB) today announced the signing of a Memorandum of Understanding (MOU) regarding cooperation and the exchange of information in the supervision and oversight of regulated firms that operate on a cross-border basis in the United States and in Italy. Through the MOU, the CFTC and the CONSOB express their willingness to cooperate in the interest of fulfilling their respective regulatory mandates in the context of supervising firms within the scope of the MOU.  The MOU establishes a framework for cooperation, contemplates the sharing of information, and provides procedures for examinations. “This MOU builds upon the longstanding cooperative relationship between ...
CFTC Designates LMX Labs as a Contract Market
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CFTC Designates LMX Labs as a Contract Market

Washington, DC (STL.News) The Commodity Futures Trading Commission today announced it has issued an Order of Designation to LMX Labs, LLC, granting it status as a designated contract market (DCM), effective November 23, 2020.  LMX Labs is a limited liability company headquartered in Chicago, Ill. and incorporated under Delaware state law. The CFTC issued the order under Section 5 of the Commodity Exchange Act (CEA) and CFTC regulation 38.3(a).  After review of its application and associated exhibits, the CFTC determined that LMX Labs demonstrated its ability to comply with the requirements of the CEA and the CFTC’s regulations applicable to DCMs. The order requires, among other terms and conditions, that LMX Labs comply with all provisions of the CEA and all requirements in the CFTC’...
CFTC Staff Extends Temporary Swap Data Reporting Relief
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CFTC Staff Extends Temporary Swap Data Reporting Relief

CFTC Staff Extends Temporary Swap Data Reporting Relief for Certain International Swap Dealers and Major Swap Participants Washington, D.C. (STL.News) The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today issued a staff letter extending no-action relief to certain CFTC-registered swap dealers (SDs) and major swap participants (MSPs). The extended relief stipulates that DMO will not recommend that the CFTC take an enforcement action against a non-U.S. SD or a non-U.S. MSP for failure to comply with the swap data reporting requirements in Part 45 and Part 46 of the CFTC’s regulations as long as: (i) the swaps are with non-U.S. counterparties that are not guaranteed affiliates, or conduit affiliates, of a U.S. person; (ii) the entity is established in...
CFTC Staff Provides Reporting Relief for Swaps Related to Upcoming DCO Auctions
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CFTC Staff Provides Reporting Relief for Swaps Related to Upcoming DCO Auctions

CFTC Staff Provides Reporting Relief for Swaps Related to Upcoming DCO Auctions as Part of the Industry-Wide Initiative to Transition Away from LIBOR Washington, DC (STL.News) The Division of Market Oversight of the Commodity Futures Trading Commission today announced it has provided swap transaction and pricing data reporting relief to specific derivatives clearing organizations (DCOs) and market participants participating in upcoming DCO auctions that will help transition certain cleared swaps from discounting using the Effective Federal Funds Rate (EFFR) to the Secured Overnight Financing Rate (SOFR).  This discounting transition is an essential part of the industry-wide initiative to transition from swaps that reference the London Interbank Offered Rate (LIBOR), and other interbank off...
CFTC Charges BitMEX Owners with Illegally Operating a Cryptocurrency Derivatives Trading Platform
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CFTC Charges BitMEX Owners with Illegally Operating a Cryptocurrency Derivatives Trading Platform

CFTC Charges BitMEX Owners with Illegally Operating a Cryptocurrency Derivatives Trading Platform and Anti-Money Laundering Violations Washington, DC (STL.News) The Commodity Futures Trading Commission today announced the filing of a civil enforcement action in the U.S. District Court for the Southern District of New York charging five entities and three individuals that own and operate the BitMEX trading platform with operating an unregistered trading platform and violating multiple CFTC regulations, including failing to implement required anti-money laundering procedures.  This case is brought in connection with the Division of Enforcement’s Digital Asset and Bank Secrecy Act Task Forces. Among those charged are company owners Arthur Hayes, Ben Delo, and Samuel Reed, who operate BitMEX’...
CFTC Orders Chicago Prop Firm and 3 Traders to Pay $745,000 for Spoofing in Agricultural and Metals Futures
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CFTC Orders Chicago Prop Firm and 3 Traders to Pay $745,000 for Spoofing in Agricultural and Metals Futures

Washington, DC (STL.News) The Commodity Futures Trading Commission issued four orders today filing and settling charges against Brendan Delovitch and Wesley Johnson both of Canada, Rajeev Kansal of India, and ARB Trading Group LP, a proprietary trading firm headquartered in Chicago, for spoofing across four exchanges in various agricultural and metals futures contracts. Specifically, the orders find that the respondents spoofed—the bidding or offering with the intent to cancel the bid or offer before execution—in the lean hogs and live cattle futures contracts traded on the Chicago Mercantile Exchange (CME); silver and copper futures contracts traded on the Commodity Exchange (COMEX); soybean futures contracts traded on the Chicago Board of Trade (CBOT); and cotton, canola, and sugar futu...
Georgia News: CFTC Charges Kenzley Ramos with Fraudulent Scheme to Profit from COVID-19
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Georgia News: CFTC Charges Kenzley Ramos with Fraudulent Scheme to Profit from COVID-19

Second CFTC Enforcement Action Targeting Misconduct Directly Tied to COVID-19 Washington, DC (STL.News) The Commodity Futures Trading Commission today announced that it has filed a complaint in the U.S. District Court for the Northern District of Texas against Kenzley Ramos, a Georgia resident, charging him with fraudulent solicitation, misappropriation, operation of an unlawful commodity pool, and failure to register with the CFTC. According to the complaint, Ramos falsely promised individuals the ability to profit from the COVID-19 pandemic by trading in off-exchange foreign currency (forex) and binary options with guaranteed 300 percent weekly returns.  This is the second enforcement action brought by the CFTC alleging misconduct directly tied to the pandemic. [See CFTC Press Release N...
CFTC Charges Laino Group Limited d.b.a. PaxForex with Offering Illegal Leveraged Transactions
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CFTC Charges Laino Group Limited d.b.a. PaxForex with Offering Illegal Leveraged Transactions

CFTC Charges Laino Group Limited d.b.a. PaxForex with Offering Illegal Leveraged Transactions in Ether, Litecoin, and Bitcoin Washington, DC (STL.News) The Commodity Futures Trading Commission today filed a civil enforcement action in the U.S. District Court for the Southern District of Texas against Laino Group Limited d/b/a PaxForex, a company registered in St. Vincent and the Grenadines.  The CFTC’s complaint charges the defendant with engaging in unlawful retail commodity transactions and failing to register as a futures commission merchant (FCM). “This action shows the CFTC’s continued commitment to ensuring that entities offering leveraged, retail transactions within our jurisdiction—including those involving digital assets—register with the CFTC,” said Division of Enforcement Direc...
CFTC and 30 States Charge Los Angeles Precious Metals Dealers
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CFTC and 30 States Charge Los Angeles Precious Metals Dealers

CFTC and 30 States Charge Los Angeles Precious Metals Dealers in Ongoing $185 Million Fraud Targeting the Elderly Largest Joint Filing Between CFTC and State Regulators in History Washington, DC (STL.News) The Commodity Futures Trading Commission (CFTC) and 30 state regulators that are members of the North American Securities Administrators Association (NASAA) announced the filing of a joint civil enforcement action in the U.S. District Court for the Northern District of Texas against two precious metals dealers and their companies for perpetrating a $185 million fraudulent scheme targeting elderly persons nationwide. The complaint charges defendants TMTE, Inc., d/b/a Metals.com, Chase Metals, LLC, Chase Metals, Inc. (collectively “Metals.com”), Barrick Capital, Inc. and its principals, L...