Commentary by Steven Lofchie
CFTC Division of Swap Dealer and Intermediary Oversight staff advised futures commission merchants on accepting and holding virtual currency as customer funds in connection with physically delivered futures contracts or swaps; staff also provided guidance on related risk management programs.
An investment firm was fined $2.9 billion by several authorities for its failure to (i) properly oversee its operations, (i) maintain internal controls and (iii) conduct proper risk management, with regard to its employees' involvement in improper payments to foreign officials.
In remarks at the National Society of Compliance Professionals, SEC Commissioner Hester Peirce encouraged clarification on the potential liability faced by compliance officers in the execution of their responsibilities.
The SEC and CFTC adopted a joint final rule to reduce margin requirements for security futures.
A broker-dealer settled FINRA charges for inaccurate classification of expenses that resulted in books and records violations.