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CFTC Report: Climate Change Threatens Stability of US Financial System

A watershed CFTC report highlights the dangers of climate change to the US economy, and provides a broad risk-mitigation roadmap. On September 9, 2020, the US Commodity Futures Trading Commission’s (CFTC’s) Climate-Related...more

CFTC Provides Additional No-Action Relief to Smooth IBOR Transition

The relief removes regulatory obstacles and provides additional flexibility for market participants. On August 31, 2020, three divisions of the US Commodity Futures Trading Commission (CFTC) issued revised no-action...more

Regulators Gear Up for LIBOR Transition Testing

In anticipation of LIBOR discontinuation, key US and UK regulators signal a shift toward examining transition progress. After an initial phase of applying mostly verbal pressure, UK and US regulators are now taking a more...more

From Safe Deposit Boxes to Cold Wallets, Bank Custody Evolves

The OCC greenlights bank custody of cryptoassets, opening a significant door to mainstream adoption and innovation. On July 22, 2020, the US Office of the Comptroller of the Currency (OCC) issued Interpretive Letter #1170...more

What the CFTC Interpretation of “Actual Delivery” Means for Crypto

The long-awaited guidance clarifies the application of the “actual delivery” exception to leveraged virtual currency transactions with retail purchasers. Earlier this year, the US Commodity Futures Trading Commission...more

SEC Puts LIBOR Transition Testing in Focus

In anticipation of LIBOR discontinuation, the SEC will begin examining transition progress. Nearly a year after the US Securities and Exchange Commission’s (SEC’s) release of a Staff Statement on LIBOR Transition, the...more

FSB Launches Consultation on Global Stablecoins

The report encourages the G20 to consider a broad set of supervisory principles when evaluating global stablecoin arrangements. On April 14, 2020, the G20’s Financial Stability Board (FSB) published a consultation on the...more

COVID-19 Update: CFTC Relief for the Derivatives Market

In the face of pandemic-related disruptions, CFTC staff have relieved exchanges, dealers, intermediaries, and other market participants from certain compliance requirements. Last week, the US Commodity Futures Trading...more

COVID-19 and the Derivatives Markets: What NFA Members Need to Know

The self-regulatory organization responds to the US derivatives market’s shift to remote working arrangements. As the novel coronavirus outbreak (COVID-19) continues to spread across the globe, causing various disruptions,...more

A CFTC Helping Hand: DSIO Offers to Review Digital Asset Products

Product innovation (including in pooled investment vehicles) is encouraged, but innovation must be consistent with the law. The US Commodity Futures Trading Commission’s (CFTC’s) Division of Swap Dealer and Intermediary...more

Mexico Issues First License Under New FinTech Law

The landmark authorization signals the Mexican government will likely grant similar licenses to more FinTech companies in the coming months. Nearly two years after the Mexican government enacted its Financial Technology...more

CFTC Issues No-Action Relief for Derivatives Market IBOR Transition

While not unlimited, the relief is welcome for counterparties seeking to transition to risk-free rates for legacy swaps. The US Commodity Futures Trading Commission (CFTC) has issued no-action relief to help market...more

The CFTC Takes New Steps to Promote Innovation and ‘Explore the Unwritten Future’

The US derivatives regulator continues to foster FinTech adoption and leadership in US markets. The US Commodity Futures Trading Commission (CFTC) has affirmed its commitment to engaging the fast-moving financial...more

Financial Firms Beware: Dangers Lurk in the Cloud

US regulators are calling attention to financial firms’ obligations to protect against evolving cybersecurity threats. On October 2, 2019, the Financial Industry Regulatory Authority (FINRA) issued an information notice to...more

The Yellow Brick Road for Consumer Tokens: The Path to SEC and CFTC Compliance - An Update

Developing a framework for consumer tokens - With the rapid growth in the development of blockchain technology, virtual currencies and token sales (sometimes referred to as initial coin offerings, or ICOs), token...more

LIBOR Discontinuation and Transition - What Investment Managers Should Know

The global shift away from LIBOR presents a complex, time-sensitive, multifaceted set of challenges and tasks for the investment management industry. In a statement published on July 12, 2019, the US Securities and...more

EMIR REFIT: Bringing the EU and the US Closer Together?

EMIR REFIT came into force on 17 June 2019, helping to level the playing field between the EU and the US. Key Points: ..Alternative investment funds will bear the brunt of the changes as EMIR REFIT closes an exemption...more

Token Presale Agreements and the ConsenSys Automated Convertible Note

Latham & Watkins has collaborated with ConsenSys to launch the Automated Convertible Note to help startups raise capital using a traditional financing instrument with an eye toward a future distribution of tokens. In...more

NFA to Require Swap Proficiency Examination for Swap Associated Persons

The NFA has implemented requirements that all swap associated persons take and pass a swap proficiency examination by January 31, 2021. Key Points: ..As of January 31, 2021, all swap associated persons will need to take...more

CFTC Seeks to Amend Commodity Pool Regulations

The CFTC’s proposal would largely codify existing exemptive, interpretive, and no-action relief in response to Project KISS market feedback. The US Commodity Futures Trading Commission (CFTC) has proposed amendments to its...more

Effective October 31, 2018: New NFA Virtual Currency Disclosure Requirements

The NFA will soon require CPO, CTA, FCM, and IB member firms to provide various disclosures warning investors of virtual currency spot and derivatives trading risks. New disclosure requirements warning customers,...more

The yellow brick road for consumer tokens: The path to SEC and CFTC compliance

Developing a framework for consumer tokens - With the rapid growth in the development of blockchain technology, virtual currencies and token sales (sometimes referred to as initial coin offerings, or ICOs) in 2017 and...more

Global Developments on Best Execution

Best execution is currently a hot topic for global regulators and the past year has seen notable regulatory focus in this area. Amid this development, firms are recommended to review their global best execution compliance...more

Are Your Employees Trading Bitcoin? Addressing Cryptocurrencies in Compliance Policies

How should broker-dealers, investment advisers, and other registered firms in the US, UK, and Hong Kong address cryptocurrencies in their compliance programs? Originally published on bloombergbna.com on April 16,...more

Private Equity Fund Managers: Annual Compliance Reminders and New Developments

Summary of private equity firms’ compliance obligations, discussion of notable developments in 2017, and outlook for 2018. US federal laws and regulations, as well as the rules of self-regulatory organizations (SROs),...more

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