Commissioner Giancarlo Proposes New Swaps Regulatory Model

On January 28th, the Wall Street Journal reported Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo is proposing a new set of rules for swaps transactions which would require, among other things, examination requirements for swaps traders. Swapping Models. On January 29th, Giancarlo gave a speech in which he outlines the flaws he sees in the current CFTC swaps regulatory model and summarizes the reforms he proposes in a related white paper. Giancarlo Remarks.

Position Limits

On January 27th, Reuters cited Clark Ogilvie, Chief of Staff to CFTC Chair Tim Massad, as saying the agency will likely approve new position limits by the end of the year. Position Limits.

Energy and Environmental Markets Advisory Committee

On January 26th, the CFTC announced the members of the Energy and Environmental Markets Advisory Committee. CFTC Press Release.

Introducing Brokers Obtain Relief from Certain Financial Reporting Requirements

On January 23rd, the CFTC’s Division of Swap Dealer and Intermediary Oversight provided certain introducing brokers (“IBs”) relief from the net capital and financial reporting requirements of CFTC Regulations 1.10 and 1.17. The conditioned relief permits foreign­domiciled IBs to file audited and unaudited form 1­FR­IBs, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of U.S. GAAP or International Financial Reporting Standards. In addition, eligible foreign­domiciled IBs will not be required to apply certain foreign currency capital charges under CFTC Regulation 1.17 and staff guidance. The relief also permits IBs to recognize as a current asset for adjusted net capital under CFTC Regulation 1.17 commission receivable balances which are promptly billed and due from their over­the­counter swap customers. CFTC Letter No. 15­02.