SEC Says Fantasy Stock Trading Violates Securities Laws; Charges Others for Selling Illegal Security-Based Swaps


The SEC issued an Investor Alert which says fantasy stock trading for small amounts of money can violate provisions of securities laws implemented by the Dodd-Frank Act.  I bet the Congressional drafters of these provisions who were trying to prevent another financial meltdown are surprised at this result, or at... Read More

Topics: Derivatives, Litigation, Public Companies and Securities

Kraft Moves to Dismiss Novel CFTC Manipulation Claim


The CFTC accused Kraft Food Groups, Inc. and former parent Mondelez Global LLC with manipulation pursuant to Section 6(c)(1) of the Commodities Exchange Act and Regulation 180.1 promulgated thereunder.  Regulation 180.1 makes it unlawful to recklessly employ manipulative devices.  Kraft has moved to dismiss the claim. Kraft’s story is straightforward. ... Read More

Topics: Derivatives, Litigation

CFTC Issues Final Interpretation on Forward Contracts with Embedded Volumetric Optionality


Recently, the CFTC published a final interpretation clarifying its seven-element test regarding forward contracts with embedded volumetric optionality (EVO). The final interpretation provides that a contract for deferred delivery of a physical commodity (i.e., a forward contract) that contains EVO will fall within the forward contract exclusion, and thus not... Read More

Topics: Derivatives, Energy

CFTC Provides Chief Compliance Officers Additional Time to Submit Annual Reports


The CFTC’s Division of Swap Dealer and Intermediary Oversight issued a no-action letter to futures commission merchants, swap dealers and major swap participants, referred to as registrants, that provides relief from certain requirements under Regulation 3.3(f).  The Regulation requires registrants to give the Commission their Chief Compliance Officer, or CCO,... Read More

Topics: Derivatives