The firms which set the rules of engagement for the $8tn market for credit default swaps have tried to impose a little order. The International Swaps and Derivatives Association, the leading industry body for the swaps market, proposed last week that any payouts from the derivatives — which act as a kind of insurance, protecting investors against the risk of a company defaulting — should have a close link to the financial health of the business in question. (Financial Times | Mar 13)
J. Christopher Giancarlo, who is expected to leave his post as chair of Commodity Futures Trading Commission in the coming months, says he plans to re-propose a controversial rule to clamp down on traders’ ability to speculate on oil and other commodities before stepping down. (Bloomberg Law | Mar 13)
U.S. efforts to prosecute foreign corrupt practices got a big boost recently with the Commodity Futures Trading Commission’s announcement that it will prosecute companies that engage in foreign bribery affecting the derivatives and swaps markets, benchmark interest rates and other aspects of commodity markets. (Forbes | Mar 12)
Ordinary investors face a confusing situation when it comes to sizing up the people doling out financial advice. Can they can be trusted to act in their clients’ best interests, or should they be treated with caution—like a car salesman? (Bloomberg Law | Mar 12)
The Securities and Exchange Commission is starting a broad review of rules that have underpinned trading on the New York Stock Exchange and Nasdaq markets since 2005, according to SEC Chair Jay Clayton. “As technology and business practices evolve, so must our regulatory framework,” the agency’s chief said Friday at a New York forum on equity market structure. “There are many areas that the commission got right, some that may have missed their mark, and some that were positive in 2005 but may no longer be so.” (Bloomberg Markets | Mar 8)