Earlier this year, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released its Examination Priorities for 2017. OCIE annually examines regulated entities to ensure compliance, prevent fraud, identify risk, and inform policy. These priorities reflect the practices, products, and services that, per OCIE, present the greatest risks to investors and U.S. capital markets. Regulated entities may use the priorities … Read More
On February 13, 2017 the Commodity Futures Trading Commission delivered an early Valentine’s Day present to swap dealers and major swap participants by extending the deadline to comply with the variation margin requirements for un-cleared swaps stipulated by Commission Regulation § 23.153 from March 1, 2017 to September 1, 2017. The CFTC’s No-Action Letter announcing this extension, CFTC Letter No. … Read More
Earlier this year, FINRA published its Annual Regulatory and Examination Priorities Letter to provide the industry with insights into the areas FINRA plans to review in its 2017 exams and to assist financial firms with reviewing and strengthening their own supervisory and compliance systems. The letter states five priority areas the authority will focus on in its 2017 exams with … Read More
Citigroup Global Markets Inc. (Citi) settled with the Commodity Futures Trading Commission (CFTC) on January 19, 2017 over the CFTC’s allegations that five traders at Citi “spoofed” the U.S. Treasury futures markets and that Citi failed to supervise the trading activity of its employees. Pursuant to the Order, Citi must pay a fine of $25,000,000 and must maintain systems and … Read More
On Wednesday, November 9, 2016, Navinder Sarao pled guilty to spoofing and wire fraud before Judge Virginia Kendall in the Northern District of Illinois. After unsuccessfully fighting his extradition from the UK, Sarao became the second person found liable for violating Dodd-Frank’s anti-spoofing statute after Michael Coscia was convicted last year.
As large financial institutions partner with Fintech start-ups to test blockchain technology, it is no surprise that governments are also experimenting with blockchain to see any potential savings in transaction costs when clearing and settling payments. Recently, the national governments of Canada and the United Kingdom tested the technology. The Central Bank of Canada conducted a trial in conjunction with the New York based start-up R3 CEV, whereby … Read More
Igor Oystacher, the now-infamous trader nicknamed “the Russian,” and his proprietary trading firm, 3Red Trading, informed the Northern District of Illinois on October 19, 2016, that the parties agreed to settle with the CFTC on the agency’s spoofing allegations. The settlement announcement came after Oystacher and 3Red failed to convince the court to dismiss the case in September 2016. Yet, … Read More