Primer on virtual currencies. The CFTC announced that its LabCFTC has released a primer entitled “A CFTC Primer on Virtual Currencies.” This primer is the first of a series that LabCFTC will release to provide information about fintech innovation. (10/17/2017)
CFTC staff announces results of clearinghouse liquidity stress test. CFTC staff announced that it has issued a report detailing the results of an evaluation of settlement liquidity at clearinghouses. (10/16/2017)
Comparability determination on EU margin requirements and a common approach on trading venues. CFTC Chairman J. Christopher Giancarlo announced determinations by the CFTC and the EC on comparability and equivalence of margin requirements for uncleared swaps, as well as a common approach regarding certain CFTC and EU authorized derivatives trading venues. (10/13/2017) See Federal Register: Comparability Determination for the European Union: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants.
Interpretation of CEA and agency regulations on characterization of VM payments and all other cash flows for cleared swaps. The Division of Clearing and Risk confirmed that, under the CEA and CFTC regulations, variation margin and all other payments in satisfaction of outstanding exposures on a counterparty’s cleared swap positions constitute settlement of the outstanding exposure and not collateral against it. (10/12/2017) CFTC Letter No. 17-51.
CFTC is seeking delay of swap dealer registration rules. CFTC Chairman J. Christopher Giancarlo told members of the House Committee on Agriculture that he will seek to delay rules that would increase the number of firms that must register as swap dealers. Giancarlo’s plan to seek a one-year delay of the rules would require firms with smaller swaps activity to register as swaps dealers and face stricter oversight. (10/11/2017) Reuters.