Ensuring markets work well for consumers and for firms – FCA publishes guidance on its approach to objectives
Publishing the latest guidance on how the FCA intended to deliver its statutory responsibilities, The FCA Approach To Advancing Its Objectives, Martin Wheatley focused on the objective to promote effective competition in consumers’ interests. He said markets that work well offer consumers the best chance to get the products they need at the right terms. This will also benefit those firms that place consumers at the heart of their business.
Testimony of the Honorable Scott D. O’Malia Before the Subcommittee on General Farm Commodities and Risk Management House Committee on Agriculture
Chairman Conaway, Ranking Member Scott, and members of the Subcommittee, I am pleased to be invited here today to discuss the Commodity Futures Trading Commission (“CFTC” or “Commission”)’s implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”),1 as well as the Commission’s oversight of the derivatives markets.
CFTC Announces that Mandatory Clearing of iTraxx CDS Indices for Category 2 Entities Begins Today
The Division of Clearing and Risk (Division) of the Commodity Futures Trading Commission (Commission) announces that the second phase of required clearing for certain iTraxx credit default swap (CDS) indices begins today for Category 2 Entities. Category 2 Entities include commodity pools, private funds, and persons predominantly engaged in activities that are in the business of banking, or in activities that are financial in nature, except for third-party subaccounts. These entities are required to begin clearing iTraxx CDS indices that are subject to the clearing requirement under section 2(h) of the Commodity Exchange Act (CEA) and Regulations 50.2 and 50.4(b) executed on or after July 25, 201
SEC Issues Guidance on Conflict Minerals
On May 30 the staff of the Securities and Exchange Commission issued interpretive guidance on the SEC’s new conflict minerals rules. The guidance, which is consistent with the discussion contained in our October 26, 2012 client memorandum, clarifies the following:
Packaging is not “product”. The packaging or container that a product is sold in is not a “product” for purposes of the rules – even where the packaging is needed to preserve the usability of the product up to and following the product’s purchase. Therefore, for example, a food and beverage company selling its products in cans that are manufactured from tin is not required to file a Form SD covering that activity. A company in the business of selling the packaging itself would, however, be subject to the rules.
Services are not “products”. A service provider (such as a transportation company) is not covered by the rules even if it manufactures equipment containing conflict minerals, as long as the equipment is retained by the service provider, is required to be returned to the service provider, or is intended to be abandoned by the customer following use of the service.