Newedge takes its leadership position seriously, actively analyzing market rules and regulations and working with governmental oversight organizations to ensure the strength and stability of the financial markets. In this role, Newedge executives in legal, compliance, trading and operations have been asked to participate in many industry committees and task forces. Additionally, Newedge has filed various public comment letters as part of the regulatory process, sharing our unique perspective as an impartial broker serving the needs of a global institutional client base.
Enhancing Customer Protection and Customer Funds Held by FCM and Derivative Clearing Organizations
Fri, 15 Feb
Newedege USA, LLC's comment letter to the Commodity Futures Trading Commission regarding certain rules aimed at strengthening the protection of customer funds held by futures commission merchants. Newedge supports the efforts of the CFTC in this important area of customer protection subject to certain comments.
Regulation of Electronic Trading
Fri, 28 Sep
Newedge Financial Hong Kong Limited - Newedge HK comment letter to SFC regarding the regulation of electronic trading..
Cross Margining for Market Professionals
Mon, 23 Apr
Newedge submitted a comment letter to the Commodity Futures Trading Commission (CFTC) regarding NYPC's Request for Order Permitting Cross Margining for Market Professionals. NYPC is requested that it be a "one-pot" cross-margining program with FICC to market professionals. Newedge strongly supports NYPC's request for the commingling order. Among other things, granting this request will (a) permit actively trading customers to obtain the benefit of margin off-sets between related futures, option on futures and underlying cash products cleared at NYPC and FICC, and thereby reduce their trading costs and make more efficient use of their capital, and; (b) encourage market participants to invest their assets with BD/FCMs - since they will be able to benefit from the aforementioned cross-margining opportunities - and thereby strengthen BD/FCMs' financial positions and increase their market share.
ICE Clear Europe's Request for an Oder Permitting Portfolio of Margining of Cleared Swaps and Foreign Futures and Options
Tue, 17 Apr
Newedge supports ICE Clear Europe's request for the referenced commingling order. Newedge feels granting this request will (a) permit customers to obtain the benefit of margin off-sets between related swaps and futures clearing at ICE Clear Europe; (B) encourage market participants to invest their assets with FCMs, and: (c) encourage participants in the energy markets to become more involved in the centralized clearing of OTC derivatives.
Using a China Model to Restore Confidence
Mon, 19 Mar
Newedge believes that customer confidence can be materially enhanced by introducing a regime providing for daily automated reconciliations of FCMs' claimed requirement of segregated funds with amounts actually held by such FCMs in segregated accounts at approved depositories. It outlines that a precident has been set with the China Futures Margin Monitoring Center Co. Ltd.