T he National Futures Association has published its quarterly Fall 2012 newsletter. View newsletter in full here (links externally to NFA website).

As part of its work on the Financial Services Bill, which will fundamentally reform UK financial services regulation when it is passed by Parliament, Her Majesty’s Treasury is seeking comment on a number of secondary measures to underpin the bill. These measures include the allocation of responsibility between the Prudential Regulatory Authority and the Financial Conduct Authority, as well as threshold conditions for persons seeking to become and to remain authorised to perform regulated activities. This consultation will be open for comment until December 24, 2012. HM Treasury is particularly

CFTC Division of Clearing and Risk staff issued an interpretation providing clarification that CFTC Rule 22.2(d) does not prohibit a customer from granting a lien on the account at the FCM, nor does it prohibit the FCM from allowing or facilitating the lien. Cross-Reference(s): CFTC Rule 22.2(d) [Futures Commission Merchants: Treatment of Cleared Swaps and Associated Cleared Swaps Customer Collateral]. Lofchie Comment: The interpretation is very significant as it will allow the cross-margining, at least for risk purposes, of cleared swap accounts with other accounts at the same or affiliated

The decision of the European Commission on the equivalence of the legal and supervisory framework of Canada to that of the European Union with regards to credit-rating agencies has been published in the Official Journal of the European Union. The decision will become effective on the twentieth day following such publication - in this instance, November 1, 2012. View decision in full here (links externally to Official Journal of the European Union).

CFTC Commissioner Bart Chilton delivered a brief speech in which he discussed the continuing need to protect the markets and to re-think how penalties are assessed. In particular, he advocates for registration with the CFTC of high speed traders and that "bad conduct" in algorithmic trading should be fined on a "per second" basis. View "Welcome to the Marchine" statement here (links externally to CFTC website).