Category Archives: Banking and Finance law

Banking and Finance Law news articles, reiews, notes and blog examples.

FIMSAC subcommittee recommends formation of working group to address e-trading in fixed income markets

By Amanda Maine, J.D. The Technology and Electronic Trading Subcommittee of the SEC’s Fixed Market Structure Advisory Committee (FIMSAC) issued its preliminary recommendation that a joint working group be formed to conduct a review of the regulatory oversight of electronic trading platforms in the corporate and municipal bond markets. The working group would consist of representatives from the SEC, FINRA, and the MSRB. Regulatory differences. The subcommittee’s recommendation noted that e-trading platforms for credit and municipal trading bonds in the U.S. are subject to different regulations based on differences in trading protocols or business models. Some platforms are regulated as alternative trading systems (ATSs) while others are regulated as broker-dealers. The subcommittee also pointed out that other significant platforms operating similar models are not regulated at all. According to the subcommittee, these regulatory differences were driven in part by….. To continue reading this legal news please click Read full information...

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Australian financial services and sanctions law

“Sanctions” have been in the news quite often lately. The United Nations has adopted, and many of its member-states have imposed, trade and economic sanctions against North Korea to pressure its regime to give up nuclear weapons. Similarly, recent political developments surrounding the so-called “Iran Nuclear Deal” have been all about re-imposing sanctions in relation to Iran’s development of nuclear weapons. There are currently 17 ongoing sanctions regimes imposed by the UN Security Council, focusing on nuclear non-proliferation, counter-terrorism and addressing unacceptable human rights.[1] With these world geo-political developments as a backdrop, we take this timely opportunity to remind Australian financial services providers of their restrictions under ‘sanction laws’. What are sanctions? A sanction is essentially an instrument used in international relations to restrict or prohibit trade and/or financial dealings or assistance….. To continue reading this legal news please click Read full information...

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CFTC’s authority over cryptocurrency fraud reaffirmed

By Lene Powell, J.D. In reconsidering a March ruling, a federal district court again found that the CFTC had standing to exercise enforcement power in a virtual currency fraud scheme. The “actual delivery exception” did not apply because the transactions were not entered into on a leveraged, margined, or financed basis and the exception did not bar enforcement of commodity fraud under Section 6(c)(1) of the Commodity Exchange Act (CFTC v. McDonnell, July 12, 2018, Weinstein, J.). In March, a district court in the Eastern District of New York entered a preliminary injunction against Patrick McDonnell and his company, CabbageTech, Corp. d/b/a Coin Drop Markets (CDM), prohibiting the defendants from engaging in fraud and requiring them to preserve books and records and provide expedited discovery. The CFTC had charged defendants with fraud and misappropriation in connection with purchases and trading of the virtual currencies Bitcoin and Litecoin. CFTC antifraud….. To continue reading this legal news please click Read full information...

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Hospitality and Entertainment: Industry Introduction

This is the first in a multi-part series that will focus on the growth, investment, and M&A trends in the hospitality and entertainment industry. Industry Overview The hospitality and entertainment industry is a service-based super sector that provides recreational activities and offers accommodations to a large volume of patrons[1]. The activities within the industry are segmented into the “arts, entertainment, and recreation” and “accommodations and food services” industries. Similar Industries Industries that are similar to hospitality and entertainment are associated by being service providing super sectors. These industries are information, financial activities, professional and business services, and education and health services.[2] Arts, Entertainment, and Recreation The arts, entertainment, and recreation sector consists of establishments that aim to entertain the varied interests of their patrons. In 2017 the sector generated $22.8….. To continue reading this legal news please click Read full information...

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CFTC joins regulatory chorus in warning investors about the hazards of digital tokens

By Brad Rosen, J.D. The CFTC has issued a customer advisory aimed at would-be investors of virtual coins and ICO’s warning them of potential risks and pitfalls associated with these novel products and emerging markets. With its release titled Use Caution When Buying Digital Coins or Tokens, the CFTC joins recent pronouncements by FINRA and the SEC in raising concerns and potential red flags in connection with these burgeoning digital instruments.In its advisory, the CFTC observes that “Digital tokens and coins can also be derivatives or commodities, depending on how they are structured.” A CFTC spokesperson elaborated stating, “The development of blockchain technologies makes it possible to digitize or tokenize virtually any asset, including physical commodities. Tokens can take many forms, including that of being a contract. The CFTC would look to the terms of the contract to determine whether it may constitute a future or a swap. For example, a….. To continue reading this legal news please click Read full information...

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