Last week, a senior official of the Securities and Exchange Commission said that Bitcoin and Ether are not securities and that there might be circumstances when a utility token is also not a security. The same official and...more
J. Christopher Giancarlo, Chairman of the Commodity Futures Trading Commission, proposed reforms to enhance swaps trading and reporting, the central clearing of swaps, swaps dealers’ capital, and persons subject to mandatory...more
Two broker-dealers’ purported failure to act on red flags – both involving customer trading – resulted in separate Securities and Exchange Commission enforcement actions against the firms. In connection with one action, two...more
Two broker-dealers’ purported failure to act on red flags – both involving customer trading – resulted in separate Securities and Exchange Commission enforcement actions against the firms. In connection with one action, two...more
The United States Supreme Court made clear that, to take advantage of a key anti-retaliation protection of the Dodd-Frank Wall Street Reform and Consumer Protection Act, an employee whistleblower must identify potential...more
CFTC Names Four Banking Organization Companies, a Trading Software Design Company and Six Individuals in Spoofing-Related Cases; the Same Six Individuals Criminally Charged Plus Two More: On January 29, the Commodity Futures...more
CFTC Sues Unregistered Company and Promoters of Fake Virtual Coin for Alleged Fraud and Operating Purported Ponzi Scheme: The Commodity Futures Trading Commission disclosed that it filed an enforcement action on January 16...more
FINRA Announces 2018 Examination Priorities; Will Review Role of Firms and Salespersons in Facilitating Cryptocurrency Transactions and ICOs: The Financial Industry Regulatory Authority issued its 2018 Regulatory and...more
Non-Registered Cryptocurrency Based on Munchee Food App Fails to Satisfy SEC’s Appetite for Non-Security: The Securities and Exchange Commission filed and simultaneously resolved an enforcement proceeding against Munchee...more
First Cash-Settled Bitcoin Futures Contract Begins Trading on CFTC-Overseen Exchange; Industry Organization Bemoans Self-Certification Process: The CBOE Futures Exchange commenced trading of Bitcoin Futures last night –...more
Three CFTC-Regulated Exchanges Self-Certify Bitcoin Derivatives Contracts: On December 1, three exchanges regulated by the Commodity Futures Trading Commission self-certified new cash-settled derivatives contracts based on...more
12/4/2017
/ Bitcoin ,
Derivatives ,
Designated Contract Markets (DCMs) ,
Distributed Ledger Technology (DLT) ,
EFRP ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
Securities and Exchange Commission (SEC) ,
Securities Exchanges ,
Spoofing ,
Wash Trades
FCM Agrees to Pay US $2.5 Million CFTC Fine for Relying on Affiliate’s Purportedly Misleading Analysis of Block Trades for a CME Group Investigation: Merrill Lynch, Pierce, Fenner & Smith Incorporated agreed to pay a fine of...more
SEC Begins Proactively Suggesting Some Promoters Halt ICOs; the UK Financial Conduct Authority Joins Worldwide Regulators Saying that Digital Tokens Issued as Part of ICOs May Be Securities: Following the release of the...more
10/6/2017
/ Bitcoin ,
Cryptocurrency ,
Financial Conduct Authority (FCA) ,
Hong Kong Securities and Futures Commission (HKSFC) ,
Initial Coin Offering (ICOs) ,
Investment Adviser ,
OCIE ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Token Sales ,
UK
Two Commodity Pool Operators Charged by CFTC with Failure to Supervise: The Commodity Futures Trading Commission brought and settled enforcement actions against two commodity pool operators for failure to supervise.
In one...more
BROKER-DEALER -
SEC Cautions Securities Laws May Apply to Interests in Virtual Organizations -
On July 25, the Securities and Exchange Commission issued a Report of Investigation cautioning that certain offers and sales...more
Yesterday, the Securities and Exchange Commission published a Report of Investigation that concluded that digital tokens issued by an entity for the purpose of raising funds for projects – even if using distributed ledger or...more
SEC/CORPORATE -
SEC Expands Nonpublic Review of Draft Registration Statements -
On June 29, the Division of Corporation Finance (Division) of the Securities and Exchange Commission announced that, beginning on July 10,...more
7/10/2017
/ Bitcoin ,
CFTC ,
Consultation ,
Emerging Growth Companies ,
Financial Conduct Authority (FCA) ,
Initial Public Offering (IPO) ,
JOBS Act ,
MiFID II ,
NFA ,
No-Action Relief ,
Registration Statement ,
Securities and Exchange Commission (SEC) ,
SEFs ,
UK
Trading Firm and Individual Trader Settle CFTC Allegations of Engaging in Wash Sales to Obtain Exchange Fee Rebates: Rosenthal Collins Capital Markets LLC (now named DV Trading LLC), a proprietary trading firm, settled...more
7/10/2017
/ Automated Systems ,
Bitcoin ,
Books & Records ,
Central Counterparties ,
Clearing Members ,
Enforcement Actions ,
Non-Prosecution Agreements ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
Swaps ,
Wash Sale Rules
FiNCEN Finalizes Rules Requiring Banks, Broker-Dealers, FCMs, Mutual Funds and IBs to Help Verify Beneficial Owners of Certain Accounts:
The Financial Crimes Enforcement Network finalized rules requiring banks,...more
5/10/2016
/ Annuities ,
Beneficial Owner ,
Bitcoin ,
Commercial Bankruptcy ,
Consumer Financial Contracts ,
Cryptocurrency ,
European Securities and Markets Authority (ESMA) ,
FinCEN ,
Futures Commission Merchants (FCMs) ,
Global Systemically Important Banks (G-SIBs) ,
Mandatory Arbitration Clauses ,
MetLife ,
MiFIR ,
Swap Trading
CFTC Brings First Insider Trading-Type Enforcement Action Based on New Anti-Manipulation Authority:
Last week the Commodity Futures Trading Commission brought and settled its first enforcement action sounding in the...more
12/8/2015
/ Algorithmic Trading ,
Anti-Money Laundering ,
Barclays ,
Bitcoin ,
CFTC ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Flash Boys ,
Insider Trading ,
Interest Rate Swaps ,
Ponzi Scheme ,
Spoofing ,
UK
SEC-Sanctioned Trader Began Alleged Spoofing After Complaining About Spoofing by Others to NYSE -
Eric Oscher and Briargate Trading, LLC, a company 50 percent owned by Mr. Oscher, agreed to pay an aggregate fine of US...more
10/13/2015
/ Bitcoin ,
Broker-Dealer ,
Brokers ,
CFTC ,
Chicago Mercantile Exchange (CME) ,
Conflicts of Interest ,
Criminal Prosecution ,
Disruptive Trading Practices ,
Dodd-Frank ,
Enforcement Actions ,
European Securities and Markets Authority (ESMA) ,
Failure To Disclose ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
High Frequency Trading ,
Hillary Clinton ,
Insider Trading ,
Investment Adviser ,
Material Nonpublic Information ,
Sanctions ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
US v Newman ,
Volcker Rule
CFTC Says Virtual Currencies Are a “Commodity” Under Federal Law, Files Charges Against Coinflip for Operating an Unregistered Bitcoin Options Trading Platform -
The Commodity Futures Trading Commission filed and...more
9/22/2015
/ Algorithmic Trading ,
Australia ,
Basel III ,
Bitcoin ,
Block Trades ,
C-Suite Executives ,
Canada ,
Cease and Desist Orders ,
CEOs ,
CFTC ,
Chicago Mercantile Exchange (CME) ,
Commodities ,
Criminal Prosecution ,
Cybersecurity ,
Derivatives ,
Designated Contract Markets (DCMs) ,
Enforcement Actions ,
FDIC ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Industry Examinations ,
Layering ,
Liquidity Risk Management Rule ,
Reporting Requirements ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
SEFs ,
Spoofing ,
Swap Dealers
Alleged Flash Crasher's Formal Indictment Provides More Details Regarding His Purported Spoofing -
The US Department of Justice filed a formal indictment against Navinder Singh Sarao in a US federal court in Chicago on...more
9/15/2015
/ Bitcoin ,
Broker-Dealer ,
Brokers ,
C-Suite Executives ,
CFTC ,
Chicago Mercantile Exchange (CME) ,
Commodities ,
Corporate Officers ,
Criminal Prosecution ,
Cybersecurity ,
Department of Justice (DOJ) ,
Disruptive Trading Practices ,
Enforcement Actions ,
European Securities and Markets Authority (ESMA) ,
Extradition ,
Filing Requirements ,
Financial Conduct Authority (FCA) ,
Financial Statements ,
Forex ,
Government Investigations ,
Hedging ,
Indictments ,
Investment Funds ,
Libor ,
Misleading Statements ,
NFA ,
Price Manipulation ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Spoofing ,
Trade Market Abuse ,
UK ,
Willful Misconduct
The New York State Department of Financial Services (NYDFS) recently issued its final BitLicense regulations with respect to Bitcoin and other virtual currencies. The new regulations require the licensing of, and establish...more
7/9/2015
/ Bitcoin ,
BitLicense ,
BSA/AML ,
Capital Requirements ,
Compliance ,
Cybersecurity ,
Entrepreneurs ,
Financial Institutions ,
New Regulations ,
Startups ,
Venture Capital ,
Virtual Currency
NYDFS Issues BitLicense Framework for Regulating Virtual Currency Firms -
The New York State Department of Financial Services issued final regulations requiring a so-called “BitLicense” and establishing minimum...more
6/9/2015
/ Bitcoin ,
BitLicense ,
Capital Requirements ,
CFTC ,
Clearing Agencies ,
Commodities ,
Compulsory Licenses ,
European Commission ,
Final Rules ,
Financial Industry Regulatory Authority (FINRA) ,
Goldman Sachs ,
Kraft ,
Market Manipulation ,
Merrill Lynch ,
NYDFS ,
Price Manipulation ,
Securities and Exchange Commission (SEC) ,
Short Sales ,
Swaps ,
Virtual Currency