MF Global Discussed on CMC’s Policy Call

On CMC’s policy call this week, members and staff discussed the upcoming exclusive MF Global roundtable in the US Senate next week, to which CMC has been invited as a panelist. We discussed the possible policy recommendations that CMC might suggest at the Senate roundtable. It was a substantive discussion and the CMC community is looking forward to having our voice heard on Capitol Hill as one of the leading groups working on policy responses to the MF Global bankruptcy.

Save the Date! CMC’s State of the Industry 2013!

CFTC Announces Public Meeting of the Technology Advisory Committee and Members of the New Subcommittee on Automated and High Frequency Trading

Washington, DC — The Commodity Futures Trading Commission (CFTC) announces that on Thursday, March 29, 2012, the CFTC’s Technology Advisory Committee (the “TAC”) will hold a public meeting at the Commission’s headquarters in Washington, DC from 10:00 a.m. to 5:00 p.m. This meeting will focus on three significant issues facing the futures and swaps industries as the Commission continues to finalize rules under the Dodd-Frank Act. Those issues are: (1) automated and high frequency trading (HFT): exchange oversight and definitions; (2) final recommendations from the Subcommittee on Data Standardization; and (3) credit limit checks: market structure and technology issues.  Read more here.

CMC Meets with Senior Staff at CFTC

CMC recently met with senior staff at the CFTC to discuss various issues under the position limits rulemaking, including aggregation and reporting. CFTC staff advised us that they were working on the petitions that had been filed by the Energy Working Group on these topics, and acknowledged CMC’s letters of support for those petitions.

On the subject of monthly reporting of daily positions, the CFTC believes that the new form that they have asked market participants to use as a template (Form 404) will be a little more burdensome to comply with than the current Form 204, but not prohibitively so. The CFTC is instituting an online process to file Form 404. Clearly, the CFTC’s opinion is that significant benefits (in excess of the costs imposed on industry) will accrue to the Commission from a surveillance perspective by seeing the daily positions data on a monthly basis.

Financial Regulatory Reform: 2012 Report Card

In advance of tomorrow’s 6th Annual Capital Markets Summit, the US Chamber released the Financial Regulatory Reform: 2012 Report Card today. The Report Card evaluates the progress being made by Congress and regulators to achieve modern, well-regulated, fair, transparent, and vibrate capital markets.  It looks both at the implementation of Dodd-Frank, as well as other key regulatory reform issues, broken down into four areas critical to ensuring the vitality of our markets:

  • Protecting the Diversity of Capital Formation
  • Reforming Corporate Governance
  • Ensuring U.S. Competitiveness Through Financial Regulatory Reform
  • Preserving the Integrity of Accounting and Auditing

In addition to grading the four areas, the report also provides suggestions on how regulators and Congress can bring up the grade to support capital formation system that benefits consumers, investors, and job creators.   The US Chamber is calling on Congress and regulators take their time, do it right, put politics aside, and think of the long-term health of the American capital formation system.

CMC Voices Opinion on CFTC’s Dodd-Frank Rulemaking Process at Regulatory Improvement Council (RIC) Event

Earlier this week, CMC was invited to participate in an event organized by RIC, where we spoke about our concerns with the CFTC ‘s onerous and burdensome regulations, which result in part from their deviation away from their erstwhile principles-based regulatory approach.

AT RIC’s request, CMC is taking the lead in forming a working group within RIC to focus on derivatives and other Dodd-Frank topics. To that end, CMC and RIC plan to work together to organize a symposium on these subjects, where other trade associations, companies and Capitol Hill staff will be invited to attend and participate on panels.

At the RIC meeting this week, CMC also circulated a preliminary draft of a letter we plan to send to the Office of Management and Budget (OMB) next week, in which we write about our support for Commissioner O’Malia’s letter sent a few weeks ago to OMB, wherein he discusses the inadequate and perfunctory cost-benefit analyses being conducted by the CFTC in its rulemaking process. We solicited support on our letter from other trade associations and companies, and are awaiting their responses.

National Oilseed Processors Association (NOPA) Discusses Dioxins on CMC Policy Call

On CMC’s policy call yesterday, Dave Ailor, Executive VP for Regulatory Affairs at NOPA, discussed why the dioxins-in-food regulatory issue before the EPA (primarily), and the FDA and USDA (secondarily), is important for many of his trade group’s member companies. Some CMC members had expressed an interest in learning more about this issue as it is potentially of importance to them also. Dave discussed the EPA’s regulatory history on this issue, the current regulatory processes being followed by the EPA, the political imperatives behind the administration’s regulatory pronouncements, and the comparative global regulatory landscape on this issue.