CFTC expected to announce new position limit regime for energy derivatives markets
Felix Shipkevich - November 26, 2009CFTC is expected to announce a new position limit regime for energy derivatives markets by December 21. It is unclear whether new rules for energy products will resemble hard limits or softer accountability levels, which involve market participants making increased disclosures about the nature of big positions. Limits could place constraints on a fund or [...]
CFCT ACTION – Prestige Ventures Corp et al.
Felix Shipkevich - November 25, 2009A federal court in Oklahoma City entered a restraining order against defendants Kenneth W. Lee, Simon Yang, Prestige Ventures Corp. and Federated Management Group Inc. The court’s order freezes assets controlled by the defendants, protects records and appoints a temporary receiver to locate and marshal assets for return to defrauded customers.
The order stems from a [...]
CFCT ACTION – Robert J. Sucarato
Felix Shipkevich - November 25, 2009CFTC obtained a default judgment order requiring Robert J. Sucarato to pay $800,000 in restitution and a $1.2 million civil monetary penalty for fraudulently soliciting commodity pool participants to trade futures and options through his hedge funds and for concealing trading losses. The court found that Sucarato provided performance reports to pool participants reflecting that [...]
NFA ACTION – James C. Morton
Felix Shipkevich - November 25, 2009The NFA barred James C. Morton from acting as a principal of an NFA Member for a period of five years and also ordered him to pay a fine of $10,000 in the event that he reapplies for NFA membership or associate membership. The
Decisionas to Morton, which was issued by an NFA Hearing Panel, accepted [...]
CFTC ACTION – Oxford Global Advisors et al.
Felix Shipkevich - November 24, 2009The CFTC charged a Minneapolis money manager and a Burnsville radio personality with running a Ponzi scheme that defrauded at least 1,000 people out of more than $190 million in a bogus currency investment scheme.
The CFTC obtained emergency orders freezing the assets held by “self-proclaimed” money manager Trevor Cook, 37, of Apple Valley, and conservative [...]
NFA ACTION: Blue Sky Capital Management Corp.
Felix Shipkevich - November 23, 2009The NFA Business Conduct Committee has accepted a settlement offer from Blue Sky Capital Management Corp. and its principal, Gregory M. Schneider, to permanently withdraw from NFA membership. Blue Sky is a Commodity Trading Advisor and Commodity Pool Operator located in Lebanon, Tennessee. The Decision, issued by the Committee, is based on a Complaint filed [...]
CFTC and SEC issue two joint orders related to security-based futures contracts, which clarify jurisdiction
Felix Shipkevich - November 20, 2009The CFTC and SEC issued two joint orders related to security-based futures contracts that clarify each Commission’s respective jurisdiction and allow additional products to underlie security futures.
The first joint order, which became effective on November 17, excludes certain foreign and domestic volatility indexes that are based on broad-based security indexes from the definition of “narrow-based [...]
US Senator Ted Kaufman outlined dangers of manipulative algorithms in a letter to SEC chairman
Felix Shipkevich - November 20, 2009US Senator Ted Kaufman outlined dangers of manipulative algorithms and systemic risk in a letter to SEC chairman Mary Shapiro.
“Given that the Commission under current procedures is now blind to high frequency operations, the need for immediate action should not wait until the Commission has completed its comprehensive review,” Kaufman wrote.
O’Malia – “end users should not be mandated to utilize exchange trading for all standard swaps”
Felix Shipkevich - November 19, 2009Scott O’Malia, a Republican commissioner who was just confirmed by the U.S. Senate this fall, issued a written partial dissent to testimony Gensler gave before the Senate Agriculture Committee on Nov. 18.
“I do believe that commercial end users should not be mandated to utilize exchange trading for all standard swaps,” O’Malia wrote. “We should enable [...]
South Korea subjects banks to new regulations on forward deals
Felix Shipkevich - November 19, 2009South Korea has tightened control over foreign exchange liquidity. The Financial Services Commission watchdog said the measures would enhance the soundness of banks’ foreign currency assets but were not intended to curb the won’s advance. One measure called on banks to hold at least 2 percent of their total foreign assets in foreign treasury bonds [...]
