F, as the case may be, under the column securities registered pursuant to section 12b of the act. Oct 18, 2016 on september 28, 2016, the commodity futures trading commission the cftc unanimously approved the expansion of currencies of interest rate swaps subject to mandatory clearing under the u. Federal register clearing requirement determination under. Securities and exchange commission commission, pursuant to section 19 b1 of the securities exchange act of 1934 act 1 and rule 19b 4 thereunder, 2 a proposed rule change to list and trade winklevoss bitcoin shares issued by the winklevoss bitcoin trust under bzx rule 14. The parties intend that sharing of nonpublic information with each other pursuant. May 02, 20 a borrower must be an eligible contract participant, as defined in section 1a18 of the commodity exchange act cea, in order to use an interest rate swap to hedge interest rate risk. Note the offmarket volume data referenced by the commission in the federal register release for the notice of proposed rulemaking for core principles and other requirements for designated contract markets, 75 fed.
Section 2h7a of the cea provides an exception to the clearing requirement the enduser exception if. A practical guide to the eligible contract participant ecp. Be it enacted by the senate and house of representatives. Securities and exchange commission 17 cfr part 240. United states of america before the commodity futures trading. The commodity futures trading commission commission or cftc is adopting an amendment to the commissions regulations to expand the existing clearing requirement for interest rate swaps pursuant to the pertinent section of the commodity exchange act cea. The foreign exchange regulation act, 1973 indian kanoon. The commodity exchange act cea was amended in 2000 by the commodity futures modernization act of 2000 to make the cftc a federal functional regulator subject to the glb act title v. Prohibition under section 19 of the federal deposit insurance fdi act. Under section 4s of the commodity exchange act 7 u. Key decisions from 2018 and enforcement trends to monitor in 2019 2018 was an interesting year for. The commodity exchange act cea regulates the trading of commodity futures in the united states. It is designed to prevent and remove obstructions on the interstate commerce in commodities by regulating transactions on commodity futures exchanges.
Prior to the cftcs creation, trading in agricultural commodities regulated by the cea was overseen by the commodity exchange administration, an office within the u. In re liborbased financial instruments antitrust litigation, f. One hundred sixteenth congress of the united states of america. Securities and exchange commission october 28, 2016 and rule. Whoever attempts to contravene, or abets any contravention of, any of the provisions of this act other than section, clause a of subsection 1 of 1section 18, section 18a, clause a of subsection 1 of section 19, subsection 2 of section 44 and sections 57 and 58 or of any rule, direction or order made thereunder, shall, for. Pursuant to rule 19b7 under the securities exchange act of 1934. Section 17a of the exchange act directs the commission to facilitate the establishment of i a national system for the prompt and accurate clearance and settlement of securities. Part 19 reports by persons holding bona fide hedge. Position limits for derivatives commodity markets council. Securities and exchange commission september 4, 2015 pursuant. Securities exchange act releases and commodities exchange act releases must. Eligible contract participantslike financial institutions, insurance companies, and.
The cftc further clarifies enduser exception to the mandatory clearing requirement for swaps july 18, 2012 section 2h of the commodity exchange act the cea, as amended by the doddfrank wall street reform and consumer protection act, grants the cftc authority to require that certain. Commodity futures modernization act of 2000 wikipedia. Be it enacted by the senate and house of representatives of the. A joint hearing of the senate agriculture and banking committees was held to consider that bill. B further definition the commission, by rule or regulation, may include. Gao found that 1 the final rule requires that interest rate swaps denominated in certain currencies and having certain termination dates be submitted for clearing to a derivatives clearing. To amend the commodity exchange act and the securities exchange act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes. To amend the commodity exchange act and the securities exchange act of 1934 to modify provisions relating to whistleblower incentives and protection, and for other purposes. A person who actively participates in the generation.
B further definition the commission, by rule or regulation, may include within, or exclude from, the term commodity pool any investment trust. Section 1a 9 of the act defines commodity to include, among other things, all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in. One hundred sixteenth congress of the united states of. Introduction the commodity futures trading commission commission has reason to. A borrower must be an eligible contract participant, as defined in section 1a18 of the commodity exchange act cea, in order to use an interest rate swap to hedge interest rate risk. Frequently asked questions about exchangetraded notes.
These regulations govern the exception to the clearing requirement available to swap counterparties meeting certain conditions under the commodity exchange act cea, as amended by the doddfrank act. The term commodity pool is defined broadly under the commodity exchange act cea to include any investment trust, syndicate or similar form of enterprise operated for the purpose of trading in commodity interests, including any commodity for future delivery, securities futures product or swap, agreement in foreign currency. Under this act, the cftc has authority to establish regulations that are published in title 17 of the code of. Pursuant to section 19 b1 1 of the securities exchange act of 1934 the act 2 and rule 19b 4 thereunder, 3 notice is hereby given that, on september 3, 2015, nyse arca, inc. Under this act, the cftc has authority to establish regulations. Exchange act shall mean the securities exchange act of 1934. Department of agriculture which was also formed in 1936. Enduser exception to the clearing requirement for swaps. Cftc finalizes enduser exception to the clearing and trade. The term security future means a contract of sale for future delivery of a single security or of a narrowbased security index, including any interest therein or based on the value thereof, except an exempted security under section 3a12 of the securities exchange act of 1934 15 u. Sep 11, 2019 the commodity exchange act outlines the qualifications for ecp eligibility in section 1a18 of the cea. Securities exchange act of 1934 new york stock exchange.
Pursuant to section 19 b1 of the securities exchange act of 1934 act,1 and rule 19b4 thereunder,2 notice is hereby given that on march 7, 2006, the new york stock exchange llc nyse or exchange filed with the securities and exchange. Securities and exchange commission pursuant to section 19. The agency administers the commodity exchange act cea,3 which was passed in 1936. Section 12b of the securities exchange act of 1934 the exchange act, the etn should be listed on the front cover of the issuers annual report on form 10. Final rules for 2012 cftc commodity futures trading. Treatment of affiliate transactions a commodity exchange act amendments. Securities and exchange commission october 28, 2016. Commodity futures trading commission hard eight futures, llc, respondent. Clearing requirement determination under section 2h of the. Commodity exchange act and related regulatory issues. A selfregulatory organization that is an exchange registered with the commission pursuant to section 78fg of this title or that is a national securities association registered pursuant to section 78o3k of this title shall file with the commission, in accordance with such rules as the commission may prescribe, copies of any proposed rule. What is the commodity exchange act cea the commodity exchange act cea provides federal regulation of all futures trading activities. Part ii department of the treasury federal trade commission. On september 28, 2016, the commodity futures trading commission the cftc unanimously approved the expansion of currencies of interest rate swaps subject to mandatory clearing under the u.
The cftc further clarifies enduser exception to the. United states of america before the commodity futures. The commodity exchange act outlines the qualifications for ecp eligibility in section 1a18 of the cea. The securities exchange act of 1934 also called the exchange act, 34 act, or 1934 act pub. Another commodity futures modernization act of 2000 was introduced in the senate on june 8, 2000, as s. The cea establishes the statutory framework under which the cftc operates. Passed in 1936, it has been amended several times since then. Associated person means, with respect to a swap dealer, any person acting for or on behalf of such swap dealer, including an associated person as defined in section 1a4 of the commodity exchange act. Securities and exchange commission 17 cfr part 240 rin 3235. Section 2h1a of the commodity exchange act cea makes it unlawful to engage in any swap that the cftc requires to be cleared, unless the swap is submitted to a registered clearing organization to be cleared. Section 19 of the federal deposit insurance act fdi act, prohibits, except with the prior written consent of the fdic, any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering. Gao found that 1 the final rule requires that interest rate swaps denominated in certain currencies and having certain termination dates be submitted for clearing to a derivatives clearing organization. Government that provides federal regulation of all futures trading activities.
Under section 19 of the commodity exchange act 7 u. Section 727 of the doddfrank act added section 2ag to the commodity exchange act cea or act, which requires all swapswhether cleared or unclearedto be reported to sdrs,5 which are registered entities created by section 728 of the doddfrank act. B may consult with and obtain such assistance and information from other agencies in the executive and legislative branches of the government including the department of justice as is necessary to enable the commission to carry out this section. Exchange act, the doddfrank act, and commission rules and regulations thereunder.
On may 4, cftc division of clearing and risk published a letter clarifying that a securitization spv that is whollyowned by, and consolidated with, a captive finance company under section 2h7ciii of the commodity exchange act cea is also eligible for the enduser exception to a clearing requirement under section 2h1a of the cea. Key decisions from 2018 and enforcement trends to monitor in 2019 2018 was an interesting year for market participants subject to the commodity exchange act. The senate agriculture committee reported out an amended version of s. Commodity assistance program for an additional amount for the commodity assistance program for the emergency food assistance program as authorized by section 27a of the food and nutrition act of 2008 7 u.
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