On September 16, the Commodity Futures Trading Commission (CFTC) approved a final rule amending the position limit rules applicable to security futures products (SFPs) by increasing the default maximum level of equity SFP position limits set by designated contract markets. Release.
On July 23, the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) released the public sections of the resolution plans submitted by the eight U.S. global systemically important banks. The full resolution plans, which are required by the Dodd-Frank Act and commonly known as living wills, were submitted for the agencies’ review on July 1. Release.
On July 22, the Federal Reserve Board, FDIC, Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released a joint statement outlining the agencies’ risk-based approach to examining banks’ BSA/AML compliance programs. Release.
On May 24, the Office of the Comptroller of the Currency (OCC) issued a final rule permitting federal savings associations with total consolidated assets of $20 billion or less to elect to operate as “covered savings associations” with the rights and privileges of national banks. A covered savings association will retain its federal savings association charter and existing governance framework, but will be subject to the same duties, restrictions, penalties, liabilities, conditions and limitations as a national bank. The final rule implements section 206 of the Economic Growth, Regulatory Relief and Consumer Protection Act. Release.
On May 24, the OCC, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) published a notice of proposed rulemaking that would establish a revised framework for determining capital and liquidity requirements for large foreign banking organizations. Comments on the proposal must be submitted by June 21. Notice of Proposed Rulemaking.
On May 29, Morningstar announced it had entered into a definitive agreement to acquire DBRS, the world’s fourth largest credit ratings agency, for a purchase price of $669 million. The transaction is expected to close in the third quarter of 2019. Press Release.
On May 24, Moody’s published its revised methodology for rating Vacation Timeshare Loan Securitizations. Methodology.
On March 25, the CFTC adopted a final rule amending the de minimis exception to the definition of “swap dealer.” Under the final rule, swaps entered into by Insured Depository Institutions (IDIs) in connection with loans to customers would not count towards the $8 billion aggregate notional amount threshold used in the de minimis exception. Release. Final Rule.
On March 26, the CFTC approved an amended comparability determination that would extend the substituted compliance permitted for Japan’s margin requirements for uncleared swaps with respect to the scope of entities subject to the margin requirements and the treatment of inter-affiliate transactions. Release. Comparability Determination.
On March 27, 2019, the CFTC approved a comparability determination of Australia’s margin requirements for uncleared swaps, finding the requirements comparable to U.S. requirements for substituted compliance purposes. Release. Comparability Determination.
On March 25, the CFTC adopted and requested comments on an interim final rule designed to provide greater regulatory certainty to global derivatives markets in the event of a “no-deal Brexit.” If the United Kingdom leaves the European Union without a negotiated withdrawal agreement, affected swap dealers and major swap participants may need to effect legal transfers of uncleared swaps that were entered into before the relevant compliance dates under the CFTC Margin Rule or Prudential Margin Rule. The interim final rule would allow an uncleared swap to retain its legacy status under the CFTC Margin Rule or Prudential Margin Rule when so transferred. Release. Interim Final Rule.
