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Regulatory Update and Recent SEC Actions - July 2021 | Blank Rome LLP

Regulatory Update and Recent SEC Actions - July 2021 | Blank Rome LLP
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MIL-OSI USA: CFTC Market Risk Advisory Committee Adopts SOFR First Recommendation at Public Meeting

Source: US Commodity Futures Trading Commission Washington, D.C. The Commodity Futures Trading Commission’s Market Risk Advisory Committee (MRAC) today adopted a market best practice known as SOFR First for consideration by the full Commission. SOFR First is a phased initiative for switching trading conventions from LIBOR to the Secured Overnight Financing Rate (SOFR) for U.S. Dollar (USD) linear interest rate swaps, cross currency swaps, non-linear derivatives and exchange traded derivatives. Acting Chairman Rostin Behnam is the sponsor of the MRAC.  SOFR First, developed by the MRAC’s Interest Rate Benchmark Reform Subcommittee (Subcommittee), is designed to help market participants decrease reliance on USD LIBOR in light of statements from the Financial Stability Board and the International Organization of Securities Commissions on LIBOR transition which reinforce U.S. banking regulator guidance that banks cease entering new contracts that reference USD LIBOR post Decembe

Column: Hedge funds took profits as U S oil price hit highest in more than six-years

Column: Hedge funds took profits as U.S. oil price hit highest in more than six-years Source: Reuters Hedge funds and other money managers cut their combined position in the six most important petroleum futures and options contracts by the equivalent of 63 million barrels to 877 million barrels in the week to July 6. Weekly net sales were the largest since the middle of March, based on records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission. Last week, fund managers were sellers of NYMEX and ICE WTI (-34 million barrels), Brent (-5 million), U.S. gasoline (-14 million), U.S. diesel (-4 million) and European gas oil (-6 million).

SEC s Regulatory Agenda & New Chairman Gensler

Monday, July 12, 2021 Chairman Gary Gensler On April 17, 2021, Gary Gensler was sworn in as the new Chairman of the SEC. Mr. Gensler was previously the chair of the U.S. Commodity Futures Trading Commission. Chairman Gensler has publicly identified a number of regulatory priorities in comments to Congress and speeches. In May 2021, Chairman Gensler testified to the U.S. House Appropriations Committee regarding the breadth and scope of the capital markets, including the growth in the number of registered advisers and the need for additional resources at the SEC. The Division of Investment Management (IM Division) has since asked to increase its budget to hire 15 additional full-time employees in fiscal 2022 to monitor markets, assess industry risks and support examinations. The IM Division currently has 221 employees.

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