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Bridging the Weeks by Gary DeWaal: May 18 to 29 and June 1, 2015 (UCITS, CCP Risks, Forex Manipulation; Pre-trade Communications, NFA Forex Dealer Members Capital)
By now, the large fines paid by five major banks to resolve criminal and civil allegations of FX manipulation are old news, although the aggregate amount — US $5.6 billion — is still staggering. Moreover, the divide between European regulators and the Commodity Futures Trading Commission appears to be widening, as the European Securities and Markets Authority issued an opinion that, if followed, would penalize so-called UCITS funds that trade US-cleared futures and swaps, while the European Commission proposes to require government oversight over all administrators of benchmark indexes — a proposal that, if adopted, also would restrict European banks and advisers from trading US-futures and swaps based on US benchmarks (whose administrators are not typically regulated). As a result, the following matters are covered in this week’s Bridging the Weeks:
- Non-Recognition of US CCPs as Subject to Equivalent Regulation May Require European-Based Funds to Restrict Trading in US Centrally Cleared Derivatives (includes My View);
- FSOC Warns of Cybersecurity Vulnerabilities and Potential CCP Risks in Litany of Potential Threats to US Financial Stability (includes My View);
- Five Banks Plead Guilty to Forex Manipulation Activities and Agree to Fines Totaling US $5.6 Billion and Other Sanctions (includes Culture and Ethics);
- NFA Proposes Enhanced Capital and Risk Management Requirements for Retail Forex Dealer Members;
- CME Sanctions Companies and Individuals for Illicit Pre-Execution Communications and Other Rule Violations (includes Compliance Weeds);
- CFTC Chairman Suggests Exchange Role in Position Limit Hedge Exemptions and Criticizes European Regulator’s Proposal to Potentially Restrict Access to US Benchmarks;
- Chief Compliance Officer Sued by SEC for Defrauding Investors and Employer Broker-Dealer; Criminal Charges Also Filed; and more.
Click here to access the video and article versions of this week’s Bridging the Weeks.
(Click here to access prior versions of Bridging the Week both by date and category and here to access the most current issue of the Corporate and Financial Weekly Digest by Katten Muchin Rosenman LLP.)
For further information, contact:
Gary DeWaal
Katten Muchin Rosenman
575 Madison Avenue
New York, New York
(212) 940-6558
gary.dewaal@kattenlaw.com
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