CFTC Approves National Futures Association Rules Enhancing Protections for Retail Forex Customers

On August 27, the U.S. Commodity Futures Trading Commission (CFTC) approved rule amendments and a new interpretive notice proposed by the National Futures Association (NFA).  The rule amendments and interpretive notice enhance protections for customers of retail foreign exchange transactions.  Press Release.

On August 28, Moody's published its methodology for assessing credit risk for companies in the independent refining and marketing industry.  Report.

On August 28, Fitch updated its UK Whole Business Securitization rating criteria.  Press Release.

On August 28, Fitch updated its EMEA RMBS rating criteria.  Press Release

On August 27, Fitch updated its criteria for analyzing large loans in U.S. CMBS transactions.  Press Release.

Potential Damages in RMBS Suit Against WMC Mortgage Drastically Reduced

On August 18, Judge Denise Cote of the federal district court for the Southern District of New York addressed the appropriate measure of potential damages in an action by Bank of New York Mellon (BoNY), as RMBS trustee, against WMC Mortgage, LLC and GE Mortgage Holding, L.L.C. In that action, BoNY seeks repurchase of a number of allegedly defective loans as trustee for the GE-WMC Mortgage Securities Trust 2006-1.  Judge Cote previously held that where repurchase is unavailable, the trustee may be entitled to damages.  On defendants' motion to exclude the testimony of the trustee's damages expert, the court held that the trustee's potential damages are limited to the repurchase price for liquidated loans, as defined in the relevant agreements.  One component of that measure is the stated principal balance of the loan; the agreements define the stated principal balance of liquidated loans as "zero."  The trustee's damages expert had not used this measure.  As a result, Judge Cote struck the report of the trustee's damages expert.  The decision reduces potential damages on liquidated loans from $379 million (as calculated by the trustee's expert) to $13.3 million (the maximum calculated by the defense expert).  Order.

CPMI and IOSCO consult on Harmonization of First Batch of Key OTC Derivatives Data Elements

On September 2, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report on the harmonization of the first batch of key OTC derivatives data elements (other than the unique transaction identifier (UTI) and the unique product identifier (UPI)).

The report focuses on a first batch of key data elements (other than UTI and UPI) that are considered important for consistent and meaningful aggregation on a global basis. The report provides information on the guiding principles adopted to develop the report and on the differentiation between first and second batch of data elements other than UTI and UPI. Also set out is the harmonization proposal in individual tables, data element per data element. The CPMI and IOSCO are working on a second batch of key data elements in parallel to this report.

ESMA Consults on Remaining MiFID II Draft ITS

On August 31, the European Securities and Markets Authority (ESMA) published a consultation paper on the remaining draft implementing technical standards (ITS) under the MiFID II Directive (2014/65/EU) and the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR).

The consultation will close on October 31, 2015, and focuses on three key areas: the timing and format of publications and communications in case of suspension and removal of financial instruments from trading on trading venues; notification and provision of information for data reporting services providers; and weekly aggregated position reports for commodity derivatives, emission allowances and derivatives thereof to deliver transparency and support monitoring of the new position limits regime.

Securitization Spotlight Session – Marketplace Lending

Join us on September 10, for SIFMA's next Spotlight Session to take a deeper dive into this lending practice and the nascent securitization market that is helping to fund it. This complimentary webinar will feature a panel of experts who will provide an overview on how marketplace lending platforms originate loans, how they fund these loans, market dynamics, how securitization plays a role and what are the prospects for the future.

Confirmed speakers include:

• Howard S. Altarescu, Partner, Co-head of Global Finance Business Unit, Orrick, Herrington & Sutcliffe
• Stuart M. Litwin, Partner, Co-head of Structured Finance & Capital Markets, Mayer Brown
• Henry G. Morriello, Partner, Chair of Finance Department & Head of Structured Finance Group, Kaye Scholer
• John K. Van De Weert, Partner, Sidley Austin

Please click here to register.