On December 17, 2012, the Commodity Futures Trading Commission voted to amend Rules 1.31 and 1.35 to require recording of certain oral communications that lead to the execution of a transaction in a "commodity interest" by certain CEA-registered persons. See News Item: CFTC Announces Approval of Final Rule on Recordkeeping (with Lofchie Comment). Although recording is being mandated by the CFTC for both these registered entities under Rule 1.31 and 1.35, as well as for swap dealers and major swap participants under Part 23, firms should be aware that the electronic recording of conversations

The CFTC recently adopted a final rule and interim final rule governing commodity options. That rulemaking includes a requirement that counterparties to unreported trade options must file an annual notice with the CFTC on new Form TO. This notice solicits comments on the reporting requirement that would be imposed by Form TO. Comments Due: February 15, 2013. View release in full: 77 FR 74647.

The CFTC Division of Clearing and Risk ("DCR") issued the attached letter stating that DCR will not recommend that the CFTC take action against Japan Securities Clearing Corporation ("JSCC") for failing to register as a derivatives clearing organization ("DCO") under CEA Section 5b(a). The letter also states that the DCR will not recommend action against JSCC's qualified clearing participants, or a parent or affiliate of a JSCC qualified clearing participant, for failing to clear yen-denominated interest rate swaps subject to the CFTC's clearing requirement under CEA Section 2(h)(1)(A) through

The CFTC's Division of Swap Dealer and Intermediary Oversight ("DSIO") issued the attached no-action letter that provides swap dealers and major swap participants with relief from the requirement to disclose the pre-trade mid-market mark to counterparties in certain credit default swaps and interest rate swaps which are identified in said no-action letter (Covered Derivative Transactions). The disclosure requirements prescribed in Rule 23.431 state that a SD or MSP must disclose to certain counterparties the pre-trade mid-market mark of a swap. The no-action letter issued today by DSIO states

The MFA submitted the attached comment letter to ESMA in response to ESMA's consultation paper on remuneration guidelines under MiFID. (As the letter notes, many hedge fund managers will become subject to these remuneration principles.) Additionally, the MFA encouraged ESMA to make clear that "the principle of proportionality applied to all of the guidelines and that proportionality included the right for Member State regulators to completely neutralize individual guidelines with respect to certain types of MiFID firms." The MFA also encouraged ESMA to narrow the scope of relevant persons and