Securities Regulation

Securities Regulation ◽

Futures Trading ◽

Product Lines ◽

Wall Street ◽

Consumer Protection Act ◽

Prior to the 2007 financial crisis, financial regulation was compartmentalized along lines of segmented financial instruments. With the exception of the regulation of swaps as described in chapter 14, post-crisis regulatory reform maintains this bifurcation of regulation along product lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC and the CFTC have begun to issue rules establishing a coordinated approach to regulating certain derivatives under the Wall Street Reform and Consumer Protection Act (widely known as the Dodd-Frank Act) in particular as they relate to swaps. This chapter discusses the jurisdiction of the SEC, what constitutes a security, sellers’ representations, consequences of securities, hedge funds, and derivatives regulation.

The History of the CFTC

Capital Markets, Derivatives, and the Law ◽

10.1093/oso/9780190879631.003.0017 ◽

2019 ◽

pp. 366-396 ◽

Cited By ~ 1

Author(s):

Alan N. Rechtschaffen

Keyword(s):

Commodity Futures ◽

Disciplinary Action ◽

Market Place ◽

Futures Trading ◽

Wall Street ◽

President Obama ◽

Exclusive Jurisdiction ◽

Consumer Protection Act ◽

History Of ◽

The Commodity Futures Trading Commission (CFTC) is an independent agency with exclusive jurisdiction over futures trading in all commodities. The Commodity Exchange Act of 1936 (CEA) set forth the first federal regulatory framework for futures trading in agricultural commodities. In 1974, Congress passed the Commodity Futures Trading Commission Act, overhauling the CEA and establishing the CFTC. When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, the CFTC was a natural regulatory authority for the implementation of Dodd-Frank because of its historical role in regulating a remote corner of the derivatives market place (i.e., futures). This chapter discusses the role of the CFTC, its structure, disciplinary action, and its regulatory background.

Outsourcing Compliance Functions and Fraud Detection

10.1093/oxfordhb/9780198840954.013.21 ◽

2021 ◽

pp. 436-473

Author(s):

David M. Shapiro

Keyword(s):

Hedge Funds ◽

Hedge Fund ◽

Fraud Detection ◽

Commodity Futures ◽

Futures Trading ◽

Compliance Function ◽

The Us ◽

Key Issues ◽

This chapter addresses the compliance function for hedge funds and considers areas where violations can occur. It surveys regulation in place in the US and internationally, looking in particular at the Securities and Exchange Commission and the Commodity Futures Trading Commission, and highlights key issues. Primarily, the chapter focuses on the outsourced nature of many of the agents responsible for providing assurance of the honesty of hedge fund operations, including trading, and reporting, registration, and discussing how compliance is made effective. The chapter concludes by considering the risks that require further research.

International Financial Regulation

Difficulties of the Financial Reform in the USA

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-10-147-158 ◽

2013 ◽

pp. 147-158

Author(s):

V. Kulakova

Keyword(s):

Economic Policy ◽

Consumer Protection ◽

Financial Regulation ◽

Financial Reform ◽

Wall Street ◽

Political Sciences ◽

Consumer Protection Act ◽

The Usa ◽

Major Factors ◽

We study the reform of financial regulation initiated by the Dodd—Frank Wall Street Reform and Consumer Protection Act of 2010. Major factors impeding Obama’s financial and economic policy are explored, including institutional difficulties, party warfare, lobbyism, and systemic inconsistencies of international financial regulation. We also examine challenges that are being faced by economic and political sciences due to the changes in financial regulation and also assess the level of radicality of the financial reform.

Differentiating Centralization and Overlap in Swap Regulation

Reorganizing Government ◽

10.18574/nyu/9781479829675.003.0007 ◽

2019 ◽

pp. 127-148

Author(s):

Alejandro E. Camacho ◽

Robert L. Glicksman

Keyword(s):

Commodity Futures ◽

Title Vii ◽

Regulatory Regime ◽

Securities Markets ◽

Futures Trading ◽

Commodity Futures Trading Commission ◽

Legislative Changes ◽

Over Time

This chapter explains how legislative changes to, and the broader commentary on, US derivatives regulation illustrate the value of parsing the overlap/distinct and centralization/decentralization dimensions in assessing the tradeoffs of regulatory allocations. The Securities and Exchange Commission and the Commodity Futures Trading Commission have been tasked with decentralized authority over securities and futures, respectively. Over time, their jurisdictions have increasingly overlapped as the futures and securities markets converged. Reorganization proposals and legislation to correct perceived problems with the overlapping, decentralized regulatory regime (such as Title VII of the Dodd-Frank Act) have usually failed to parse the various tradeoffs between overlap and distinct or between centralized and decentralized authority. By limiting their analysis, policymakers and observers of derivatives regulation may have misdiagnosed problems with the existing allocation or missed potential opportunities to craft different regulatory configurations that might have better accommodated policy tradeoffs or been more politically viable.

Current Hedge Fund Debates and Controversies

10.1093/oso/9780190607371.003.0029 ◽

2017 ◽

Author(s):

Dianna C. Preece

Keyword(s):

Insider Trading ◽

Hedge Funds ◽

Conflicts Of Interest ◽

Hedge Fund ◽

Active Management ◽

Wall Street ◽

Net Worth ◽

Market Participants ◽

Alternative Beta

The hedge fund industry has grown to nearly $3 trillion over the last 20 years. High-net-worth individuals and institutional investors expect high returns and low correlation with traditional asset classes in exchange for the fees paid. The standard fee structure is “2 and 20,” 2 percent of assets under management and 20 percent of profits, representing high fees for active management. Hedge funds are largely unregulated and somewhat mysterious. As a result, they are the subject of debates and controversies among market participants and policymakers alike. Debates focus on fee structures, alpha versus alternative beta, weakening returns, activist investors, and leverage. The Securities and Exchange Commission has targeted hedge fund misconduct and malfeasance, pursuing perpetrators of fraud, insider trading, and conflicts of interest in the industry. Several high-ranking Wall Street hedge fund executives have been charged with, and in some cases convicted of, breaking securities laws.

Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the Securities and Exchange Commission Proposed Rules for Implementing the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934

Current Issues in Auditing ◽

10.2308/ciia-50017 ◽

2011 ◽

Vol 5 (1) ◽

pp. C16-C27 ◽

Cited By ~ 4

Author(s):

Eileen Taylor ◽

James Bierstaker ◽

Joseph Brazel

Keyword(s):

Consumer Protection ◽

Wall Street ◽

Administrative Action ◽

Consumer Protection Act ◽

Auditing Standards ◽

Securities Laws ◽

Original Information

SUMMARY: Recently, the Securities and Exchange Commission (“SEC” or “Commission”) proposed rules and forms to implement Section 21F of the Securities Exchange Act of 1934 (“Exchange Act”), entitled Securities Whistleblower Incentives and Protection, and sought comment thereon. The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010 (“Dodd-Frank”), established a whistleblower program that requires the Commission to pay an award, under regulations prescribed by the Commission and subject to certain limitations, to eligible whistleblowers who voluntarily provide the Commission with original information about a violation of the federal securities laws that leads to the successful enforcement of a covered judicial or administrative action, or a related action. Dodd-Frank also prohibits retaliation by employers against individuals that provide the Commission with information about potential securities violations. Comments were requested by the Commission and could be submitted on or before December 17, 2010. The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the Commission on the Proposed Rules for Implementing the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934.

Cryptocurrency regulations will become more variable

Emerald Expert Briefings ◽

10.1108/oxan-db233665 ◽

2018 ◽

Keyword(s):

Futures Trading ◽

Content Type ◽

Securities Law ◽

The Us ◽

Commodity Futures Trading Commission ◽

Regulatory Scrutiny ◽

Market Capitalisation ◽

And Control

Subject Cryptocurrency classification. Significance The classification of crypto assets under US securities law is less clear than in Japan, China and South Korea, but a working group comprising senior officials of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) is discussing it. The unclear status of Ethereum’s ether and Ripple’s XRP, the second- and third-largest crypto assets by market capitalisation, is the centre of attention. Impacts Mined crypto assets including bitcoin and litecoin are likely to remain classed as commodities. Ether and XRP are unlikely to be designated as commodities as they were initial coin offerings (ICOs) but also not as standard securities. As ICOs come under increasing regulatory scrutiny and control, more will fail, but a few may achieve notable success.

Financial Market Regulation and Opportunities for Accounting Research

Accounting Horizons ◽

10.2308/acch-50165 ◽

2012 ◽

Vol 26 (3) ◽

pp. 563-581 ◽

Cited By ~ 5

Author(s):

Mark J. Kohlbeck ◽

Susan D. Krische ◽

Nancy R. Mangold ◽

Stephen G. Ryan

Keyword(s):

Financial Market ◽

Financial Institutions ◽

Financial Regulation ◽

Panel Discussion ◽

Market Regulation ◽

Wall Street ◽

Financial Market Regulation ◽

Accounting Research ◽

Consumer Protection Act ◽

Regulation Of Financial Markets

SYNOPSIS A concurrent session at the 2011 American Accounting Association Annual Meeting featured the panel discussion “Financial Market Regulation and Opportunities for Accounting Research.” Structuring their comments around their unique interests and expertise, the panelists covered diverse topics on the regulation of financial markets and financial institutions, including current activities of the primary financial market regulators responsible for accounting and auditing oversight, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the financial regulation of financial institutions from an economist's perspective. This paper summarizes the panelists' prepared remarks, which were followed by questions and comments from the audience.

Commodity Exchanges and Regulation

10.1093/oso/9780190656010.003.0003 ◽

2018 ◽

Author(s):

Jerry W. Markham

Keyword(s):

Foreign Currency ◽

Commodity Futures ◽

Futures Trading ◽

Financial Responsibility ◽

Market Participants ◽

Futures Options ◽

Currency Exchange ◽

Financial Derivative ◽

The U.S. Commodity Futures Trading Commission (CFTC) intensively regulates commodity futures, options, and swaps pursuant to the provisions of the Commodity Exchange Act of 1936. The Securities and Exchange Commission (SEC) and federal banking agencies also have some jurisdiction over derivative financial instruments. This chapter describes the CFTC regulations, including registration requirements for designated contract markets, clearinghouses, and various swap market participants. It also describes the financial responsibility requirements imposed on futures commission merchants and safeguards for customer funds in the futures markets. Additionally, the chapter addresses prohibitions against misleading sales activities, deceptive trading practices, and price manipulations. Finally, it reviews the role of the SEC and bank regulators in regulating financial derivative contracts, particularly securities derivatives and foreign currency exchange transactions.

SEC proposes new compensation clawback rules

Journal of Investment Compliance ◽

10.1108/joic-08-2015-0048 ◽

2015 ◽

Vol 16 (4) ◽

pp. 43-46 ◽

Cited By ~ 1

Author(s):

Andrew Brady ◽

Rolf Zaiss ◽

Nyron Persaud

Keyword(s):

Executive Compensation ◽

Financial Reporting ◽

Stock Exchanges ◽

Wall Street ◽

Content Type ◽

Consumer Protection Act ◽

Disclosure Requirements ◽

New Public ◽

Expert Analysis

Purpose – To examine the proposed rules issued by the Securities and Exchange Commission (SEC) pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which, if adopted, would require national stock exchanges to establish listing standards that would require listed issuers to adopt so-called clawback policies for the recovery of excess incentive-based compensation in the event that an issuer is required to prepare an accounting restatement resulting from material noncompliance with any financial reporting requirement. Design/methodology/approach – The article discusses the SEC’s proposed rules, including the circumstances that would require recovery of excess incentive-based compensation, the types of compensation that, and the individuals whose compensation, would be subject to recovery, and certain new disclosure requirements for listed issuers. Findings – The SEC’s proposed rules will, if adopted, impose additional burdens on listed issuers to adopt and comply with recovery policies for excess incentive-based compensation and adhere to new public disclosure requirements. Originality/value – Expert analysis from experienced securities and executive compensation lawyers.