SEC Enforcement Update: With Khuzami Out, Who’s on Deck?

The Security and Exchange Commission’s (SEC) director of enforcement position is now vacant: Robert Khuzami, who held the job from 2004-2009, left the agency last Thursday. Now speculation about who might replace Khuzami is growing. Since assuming the chairmanship of the SEC, Elisse Walter has already...

China Opens Up on Futures: How Will U.S. Regulators React?

The Shanghai Futures Exchange (SHFE) is finalizing a five year development plan (2013 – 2017) that will open up a variety of derivatives contracts and options to foreign access. The SHFE will simultaneously develop crude oil, index, and metals futures, alongside financial derivatives. “The exchange...

SEC Joins NFA, CFTC in Enhancing Market Monitoring Tech

The Securities Exchange Commission (SEC) will join its fellow U.S. regulators in enhancing its market monitoring techniques. Beginning this month, the SEC will stream real-time trade data into its headquarters. SEC’s New Tech The SEC’s new technology will reportedly cost $2.5 million in the first year....

Asia Derivatives Update: Korean Banks Strong on Cap Levels; China & FX

The South Korean banking sector is already well ahead of international regulatory benchmarks for capital requirements, according to Lee Sangche, deputy chairman for international affairs at the Financial Services Commission, and Risk. Sangche clarifies the need to stay ahead of Basel III requirements: At the...

Global Derivatives Update: ESMA and Clearing, Italy’s Transaction Tax

Derivatives Transaction Tax in Italy A tax on equity derivatives transactions grew more likely in Italy this week, as the Italian Senate approved a budget containing the seeds of a Financial Transaction Tax (FTT). The bill was first introduced to Italian parliament in mid-October. In the interim, the...

Four Banks Fined $120 Million for ‘Mis-Selling’ Derivatives in Milan

On Wendesday an Italian court found Depfa Bank, UBS (UBSN.VX), JPMorgan (JPM.N) and Deutsche Bank (DBKGn.DE) guilty of fraud. The banks were found guilty of “mis-selling derivatives” (Reuters) to Milan; the four banks were also accuse of lying about the inherent risks of the contract, as well as...

CFTC Reviews ICE: What Were They Looking For?

The U.S. Commodity Futures Trading Commission (CFTC) has completed a rule enforcement review of ICE Futures. The Commission’s Division of Market Oversight  released the full review of ICE’s disciplinary program, along with a statement, today. But what were they looking for at ICE? CFTC Determines...

SEC, House GOP and the Future of the Volcker Rule

The Volcker Rule, a linchpin of U.S. financial regulation, is under attack from two directions this week, and with one of its leading supporters leaving office, it may be more vulnerable than ever. House Republicans assailed the Volcker Rule, which would place severe restrictions on proprietary trading and...

The Rise of Market Surveillance: HFT Tactics Used by Regulators

The Australian Securities and Investment Commission (ASIC) has partnered with First Derivatives to build a market surveillance system that will employ technology used by high-frequency traders. The new “market surveillance” system will monitor markets so as to avoid “market events” such as Knight...

SEC Pressured JPMorgan on Proprietary Trading Before $6.2 Billion Loss

Securities and Exchange Commission (SEC) members pressured JPMorgan Chase & Co. to strengthen investor disclosures on proprietary trading several months prior to the infamous “London whale” loss that has so far cost the bank $6.2 billion. In a letter to Chief Financial Officer Douglas Braunstein, the...
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