Most Clicked FIA SmartBrief Stories

1. CME reportedly considers changing how it backs trades

FIA SmartBrief | Mar 23, 2015

CME Group is discussing with the Commodity Futures Trading Commission a proposed change in the way the exchange operator backs trades, a source said. The change would mean that banks would not need to count the cash and securities they put up to back derivatives as their own assets, according to the source. FIA CEO Walt Lukken said this year that working with regulators on capital requirements "is one of our highest priorities." Bloomberg (03/20)

2. CME's Duffy calls for EU recognition of U.S. clearinghouses

FIA SmartBrief | Mar 26, 2015

Terry Duffy, executive chairman of CME Group, testified before a House subcommittee about the need for European regulators to recognize U.S. clearinghouses. Duffy said the issue is resulting in disruptions in the U.S. futures markets. Commodity-derivatives market participants called on lawmakers to revise the Dodd-Frank Act and improve protections for hedgers. The House hearing is the beginning of the reauthorization process for the Commodity Futures Trading Commission. (subscription required) (03/25) Financial Times (tiered subscription model) (03/25) (03/25)

3. FCMs reportedly raise derivatives-clearing costs

FIA SmartBrief | Mar 25, 2015

Goldman Sachs and other futures commission merchants are said to be increasing costs for derivatives clearing as the supplementary leverage ratio in the U.S. takes hold. The amount of the increases depends on the client, according to the FCMs. (subscription required) (03/24)

4. Jobs disappear with Chicago's vanishing futures-trading pits

FIA SmartBrief | Mar 25, 2015

Chicago's futures-trading pits, where for decades orders were shouted for wheat, corn and other contracts, are vanishing, replaced by computers. Jobs also are disappearing as CME Group, which runs the pits in Chicago and New York, says about 50 employees who help operate the trading floors will be laid off. New York Times (tiered subscription model), The (03/24)

5. Global FX code of conduct is introduced

FIA SmartBrief | Mar 24, 2015

Committees for the foreign exchange market operated by major central banks have agreed to a global code of conduct for currency trading. Traders are prohibited from sharing order information. "FX market participants are advised to apply the global 'high-level principles' set out in this document to the FX market as it evolves, including with respect to new FX products, processes and technologies," according to a document from the central banks. Reuters (03/23)

6. CME faces challenges in launching EU wheat contract

FIA SmartBrief | Mar 25, 2015

Chicago-based CME Group had planned to debut an EU wheat-futures contract by the end of next month, but it has yet to reach agreements with local companies to guarantee sufficient deliverable capacity. "If for whatever reasons the parties that we are speaking to decide not to move forward ... we would not be making the contract available," said Eric Hasham of CME. Reuters (03/24)

7. SEC calls for FINRA registration of prop-trading firms

FIA SmartBrief | Mar 26, 2015

The Securities and Exchange Commission has approved a proposal to increase oversight of high-frequency-trading firms, voting unanimously to require proprietary-trading companies to register with the Financial Industry Regulatory Authority. The SEC will gather feedback on the change, which needs approval again before going into effect. Financial Times (tiered subscription model) (03/25) Wall Street Journal (tiered subscription model), The (03/25) Reuters (03/25)

8. Deutsche Bank reportedly might rein in trading

FIA SmartBrief | Mar 24, 2015

Bloomberg (03/23)

9. CFTC enforces swaps-reporting rules despite complaints

FIA SmartBrief | Mar 27, 2015

The Commodity Futures Trading Commission is enforcing swaps-reporting rules as market participants complain that the rules are too harsh. "The CFTC cannot carry out its vital mission of protecting market participants and ensuring market integrity without correct and complete reporting by registrants, including designated contract markets," said Aitan Goelman, director of enforcement. International Financing Review (free content) (03/26)

10. Dealers may shift on revealing derivatives counterparty names

FIA SmartBrief | Mar 24, 2015

Dealers are showing signs they are shifting their stance on the practice of revealing counterparty names on derivative trades on swap-execution platforms. They've maintained the practice to protect access to dealer-only pools of liquidity, but regulators are not seizing on the change and have little interest in ending the practice. Reuters (03/23)

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