Highlights from Day One of the 39th Annual International Futures Industry Conference in Boca Raton, Fla.
Wetjen says CFTC’s spending priorities include spot-checking work of SROs: The Commodity Futures Trading Commission should focus its spending on surveillance, examinations and enforcement, according to acting Chairman Mark Wetjen. Wetjen said part of the CFTC’s examination program should include spot-checks of examines conducted by self-regulatory organizations. Alluding to the situations of MF Global and PFGBest, Wetjen said it wouldn’t hurt to have the CFTC act as “another set of eyes.”
ICE’s Sprecher shares some of motives behind SMX acquisition: IntercontinentalExchange Chairman and CEO Jeff Sprecher said the fall of MF Global was one of the incidents that motivated the ICE to acquire the Singapore Mercantile Exchange. Sprecher said clients in other parts of the world were scared by the notion of their funds being dramatically affected while they were asleep. Sprecher also said poor harmonization on global regulations continues to present challenges for the industry. (read more…)
Singapore Exchange is poised to bring on new Asian currency futures this year as the exchange plans to expand its Asian FX suite to include renminbi, yen and baht. The new offerings, if approved, are slated to go live in the third quarter, SGX announced Tuesday during the 39th Annual International Futures Industry Conference. The latest announced expansion comes only four months after SGX launched its FX futures contracts business, which has seen more than $1 billion in notional value traded since its inception.
Adding these currencies falls in line with SGX’s stated commitment to transparency in the marketplace. Bringing major currency FX derivatives onto the SGX platform will also enable better risk management for traders in the Asian time zone and “facilitate greater use of RMB in international trade and investment,” said Magnus Bocker, the CEO of SGX.
The move also increases the importance of Singapore as a derivatives hub and supports SGX’s effort to and grow its relationship with China . (read more…)
A collection of stories from SmartBrief publications and around the web…
Rough week for FINRA: Mason Braswell at InvestmentNews took FINRA to task for the lack in transparency when it comes to firms reporting diversity data. But that was nothing compared to tag-team smack down FINRA absorbed from the Wall Street Journal and the Public Investors Arbitration Bar Association. WSJ went after the self-regulatory organization for not doing an adequate job of keeping track of brokers’ regulatory violations, criminal misconduct and other “red flags.” Then the PIABA followed-up by releasing a study that found FINRA “‘routinely’ strips out some possible red flags on brokers from its database in the information it makes available to investors.” So not only is FINRA not catching all the misconduct it should. It is also deleting some of the misconduct it actually does catch. Ouch!