In response to the mandatory swap execution facilities ("SEF") registration date approaching on October 2, the CFTC Division of Market Oversight and Clearing and Risk issued an interpretive Guidance on a number of issues regarding trades on an SEF or designated contract market ("DCM") that are cleared at derivatives clearing organizations ("DCO") by clearing futures commission merchants ("FCM"). Delta Strategy Group Summary of the Guidance: 1. The CFTC confirms that an FCM must screen all SEF/DCM orders, both customer and proprietary, against credit limits prior to execution regardless of how

CFTC Chairman Gary Gensler delivered a speech before the International Group of Treasury Associations and the U.S. Chamber of Commerce, addressing the CFTC's progress since swaps market reforms began in 2010 as well as discussing future plans. Chairman Gensler seemed generally pleased with the CFTC's progress. He began by recalling the state of the U.S. economy in 2008 and comparing it to what he views as a much more transparent and efficient swaps market today. He credited the CFTC with making the markets more transparent through initiatives such as requiring swap execution facilities to be

The CFTC issued an order filing and settling charges against R.J. O'Brien Associates LLC ("RJO"), a CFTC-registered FCM, for unlawfully commingling secured foreign futures and options customer funds with segregated domestic futures and options customer funds. CFTC Rule 30.7(d) ("Treatment of Foreign Futures or Foreign Options Secured Amount") prohibits secured customer funds from being commingled and deposited into the same accounts separately held for segregated domestic futures and options customer funds. The CFTC Order found that RJO, acting as a clearing FCM and depository, failed to

CFTC Commissioner Bart Chilton issued a statement regarding the upcoming October 2 effective date for reporting rules for swap execution facilities (SEFs). Commissioner Chilton stated his support for the new reporting rules, saying that they will shine a much needed light into the "dark markets" that contributed to the financial crisis in 2008. However, Commissioner Chilton said the CFTC should provide a targeted, time-limited relief for companies to comply with the new reporting requirements of CFTC Rule 43 ("Real-Time Public Reporting") and Rule 45 ("Swap Data Recordkeeping and Reporting

SEC Chair Mary Jo White delivered a speech to the Council of Institutional Investors at their fall conference in Chicago, highlighting the importance of "deploying the full enforcement arsenal" for the benefit of investors. Chair White explained the SEC's priorities, stating that one of their highest priorities is to complete the Congressionally mandated rules stemming from Dodd-Frank and the JOBS Act. White also spoke about the SEC's enforcement principles, highlighting certain techniques the SEC employs. For example, Chair White voiced her support for the legislation introduced in Congress