MATTERS TO BE CONSIDERED:
- The Commission will consider whether to adopt rules under the Securities Exchange Act of 1934 (“Exchange Act”) that are designed to prevent fraud, manipulation, and deception in connection with transactions in security-based swaps as well as to prevent the personnel of a security-based swap dealer or major security-based swap participant from taking actions to coerce, mislead, or otherwise interfere with such entity’s chief compliance officer.
- The Commission will consider whether to adopt rule amendments to Regulation M under the Exchange Act that remove certain existing rule exceptions that reference credit ratings and substitute in their place new exceptions that are based on alternative standards of creditworthiness.
- The Commission will consider whether to approve a proposed amendment to the CAT NMS Plan to implement a revised funding model (“Executed Share Model”) for the consolidated audit trail (“CAT”) and to establish a fee schedule for Participant CAT fees in accordance with the Executed Share Model.
Interesting, CFTC has a meeting the same day with the same sort of topics...
- Final Rule: Governance Requirements for Derivatives Clearing Organizations
- Proposed Rule: Derivatives Clearing Organizations Recovery and Orderly Wind-down Plans (The SEC has a similar rule up: https://www.federalregister.gov/documents/2023/05/30/2023-10889/covered-clearing-agency-resilience-and-recovery-and-wind-down-plans)
- Proposed Rule: Amendments to Part 17 Large Trader Reporting Requirements (https://www.ecfr.gov/current/title-17/chapter-I/part-17)
- Proposed Order/Request for Comments: European Union Non-Bank Swap Dealer Capital Comparability Determination
- Amendment to DCO Order of Registration: Cboe Clear Digital, LLC ( Crypto Trading and Clearing like Traditional Markets)
I wonder if this is all connected to this letter from CFTC staff 2 days ago?
How does this relate to GameStop?
DCR expects DCOs and applicants to actively identify new, evolving, or unique risks and implement risk mitigation measures tailored to the risks that these products or clearing structure changes may present.
For DCO registrants and applicants clearing contracts that may involve physical delivery of digital assets, DCR, working with other relevant CFTC staff, will emphasize reviews of physical settlement arrangements, including whether DCOs have adequately identified and managed risks and obligations associated with digital assets and whether DCO rules clearly state the obligations of the DCO, if any, with respect to physical deliveries involving digital assets.
This sounds like they might be worried about how GameStop token risk (for example like at FTX?) is being settled?
Adding, from the Federal Reserve's Consent order with Silvergate:
"Silvergate shall continue to fully cooperate with DFPI’s ongoing investigation into Silvergate’s relationship with FTX/Alameda and SEN transactions."
Comparing FDIC Quarterly Banking Profile: 137,729,743 Swaps in the first quarter of 2023 (+27.86% from same point in 2021--in the first quarter of 2021, there were 107,718,346 swaps). With this uptick in swaps, it sure would be GREAT if CFTC was publishing swap data! Oh wait, they've hidden it...