Entries by Tayloe Draughon

JPMS Fined $800,000 for Failure to Supervise and Pre-Trade Controls

A Case for At-Trade Risk Management JPM accepted a fine for $800,000 because they “failed to establish, document, and maintain a system of risk management controls and supervisory procedures, including written supervisory procedures and an adequate system of follow-up and review, reasonably designed to manage the financial, regulatory, and other risks of its market access […]

CFTC Regulation 1.11: Risk Management Program for futures commission merchants

(C) CFTC Risk Management Program. (1) Each futures commission merchant shall establish, maintain, and enforce a system of risk management policies and procedures designed to monitor and manage the risks associated with the activities of the futures commission merchant as such. For purposes of this section, such policies and procedures shall be referred to collectively […]

CME Rule 982 – Risk Management

CME Rule 982 – Risk Management All clearing members must have written risk management policies and procedures in place to ensure they are able to perform certain basic risk and operational functions at all times. At a minimum, the following areas must be considered in the firm’s policies and procedures, depending on the firm’s size […]

Ethereum briefly crashed from $319 to 10 cents in seconds

Ethereum briefly crashed from $319 to 10 cents in seconds on one exchange after ‘multimillion dollar’ trade Ethereum briefly suffered a flash crash on the GDAX exchange on Wednesday. The price fell from around $319 to 10 cents in a matter of seconds. Many ethereum traders lost large sums of money. The cryptocurrency later rebounded. […]

RenTech Doesn’t Want to Show Code to CFTC

Renaissance Technologies, the $65 billion hedge fund, is pushing back against federal regulators’ interest in highly-technical trading software out of concern that their source code wouldn’t be secure in the government’s hands, The Post has learned. The Commodity Futures Trading Commission is interested in digging into the software at so-called “quant” funds, which use highly-secretive […]

FINRA’s 5 Biggest Fine Categories in 2016

ThinkAdvisor reports: Fines ordered by FINRA in 2016 shattered the self-regulator’s previous record from 2014, Eversheds Sutherland found Fines ordered by the Financial Industry Regulatory Authority in 2016 shattered the self-regulator’s previous record in 2014 – jumping to a record high of $176 million, an 87% increase from the $94 million reported in 2015 and […]

Globex Orders Transaction Speed Limits

The CME states the following: Extraordinary and excessive messaging rates generated by a client system can negatively impact all market participants (for example, by creating performance latencies). The CME Globex messaging controls are designed to address this risk by: supporting valid trading activity, and preventing a malfunctioning trading system from impacting the markets To protect […]