Week of  February 2 - 8, 2026

🗓️ February 2, 2026

• Texas Resident to Pay Over $14 million for Misappropriation of Confidential Information, Illegal Kickbacks. Washington - The Commodity Futures Trading Commission announced a consent order against Matthew Clark for misappropriating confidential information and directing business in exchange for illegal kickbacks, resulting in $7,709,509 in restitution and $6,532,360 in disgorgement, along with a permanent ban from trading and CFTC registration. This order resolves all CFTC claims against Clark, who was also charged and sentenced in a related criminal case to six years and six months in prison, with additional restitution and criminal forfeiture. The CFTC had previously settled with broker Mathew Webb and entered a consent order against trader Peter Miller for their roles in the schemes. 🔗 Read more
• CFTC Designates Xchange Alpha LLC as a Contract Market. Washington - The Commodity Futures Trading Commission announced it has designated Xchange Alpha LLC as a designated contract market under Section 5 of the Commodity Exchange Act. Xchange Alpha, registered in Delaware and headquartered in Scottsdale, Arizona, demonstrated its ability to comply with the necessary regulations. The designation order requires Xchange Alpha to adhere to all applicable provisions of the CEA and CFTC regulations for DCMs. 🔗 Read more
• CFTC Staff Issues Interpretation on Legacy Swap Status. Washington - The Commodity Futures Trading Commission’s Market Participants Division and Division of Clearing and Risk issued an interpretive letter stating that Morgan Stanley’s legacy swaps retain their status under the Commission’s uncleared swap margin and swap clearing requirements following an internal reorganization merger. The MPD staff confirmed that these swaps remain exempt from the uncleared swap margin requirements for counterparties subject to them, while the DCR staff determined that the merger does not affect their legacy status concerning swap clearing requirements. 🔗 Read more
• Survey on the Access to Finance of Enterprises: lending conditions tightened. Firms in the euro area reported a net tightening in bank loan interest rates and other loan conditions, with a modest rise in financing needs and a small perceived decline in availability, increasing the bank loan financing gap. Inflation expectations remained broadly unchanged, though there were upside risks for long-term inflation, and the use of artificial intelligence was widespread but mostly infrequent or moderate. The SAFE survey, conducted from 19 November to 15 December 2025, included 5,067 firms, with 92% having fewer than 250 employees, and covered economic and financing developments from October to December 2025. 🔗 Read more
  

🗓️ February 3, 2026

• EIOPA seeks input on supervisory statement on the authorisation and supervision of undertakings owned by private equity firms. The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on a supervisory statement concerning the authorisation and ongoing supervision of (re)insurance undertakings related to private equity firms. This initiative aims to promote consistent, high-quality, and risk-based supervision across the EU, addressing risks such as misaligned investment horizons, changes in business models, and complex ownership structures. Stakeholders are invited to provide feedback on the Consultation Paper by 30 April 2026, with responses to be published on EIOPA’s website. 🔗 Read more
• The Arizona Department of Insurance joins IAIS cooperation and information exchange agreement. The Arizona Department of Insurance and Financial Institutions has joined the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU), enhancing international supervisory cooperation and information exchange. This agreement allows for open cooperation among insurance supervisors, promoting financial stability and sound supervision of cross-border insurance operations. Since its inception in 2009, the MMoU has grown to represent three-quarters of global gross written premiums, with a rigorous assessment process ensuring compliance and confidentiality. 🔗 Read more
• ESMA launches selection process for its next Chair. The European Securities and Markets Authority (ESMA) has initiated the selection process for the ESMA Chair, a pivotal leadership role based in Paris, responsible for shaping Europe’s financial markets and guiding the organization through regulatory changes. The Chair will lead both the Board of Supervisors and the Management Board, ensuring strategic oversight and effective governance, while also representing ESMA at the highest institutional level and before the European Parliament. This role offers a strategic and multicultural working environment focused on investor protection and orderly markets. 🔗 Read more
  

🗓️ February 4, 2026

• Federal Reserve Board finalizes hypothetical scenarios for its annual stress test and votes to maintain the current stress test-related capital requirements until public feedback can be considered. The Federal Reserve Board finalized the hypothetical scenarios for its annual stress test, which are similar to those proposed in October, and decided to maintain the current stress capital buffer requirements until 2027 to incorporate public feedback. The stress test evaluates the resilience of 32 large banks by estimating losses, net revenue, and capital levels under severe recession scenarios, including a 2026 scenario with a peak unemployment rate of 10 percent and significant declines in house and commercial real estate prices. Additionally, banks with substantial trading operations must incorporate a counterparty default scenario and a global market shock component, with revisions made to enhance consistency and plausibility. 🔗 Read more
• SEC Charges Three Individuals and Corporation for Their Role in Alleged Microcap Stock Fraud. The Securities and Exchange Commission charged California residents Brett Rosen and Deborah Braun, along with their company RB Capital Partners, Inc., with securities fraud for misleadingly promoting Solar Integrated Roofing Corporation’s stock while secretly selling their own shares at high profits. Additionally, former CEO David M. Massey was charged with making false statements in a press release about a $10 million line of credit, which falsely inflated the stock price. The SEC’s complaint, filed in the Southern District of California, also includes criminal charges announced by the U.S. Attorney’s Office, and the SEC has warned investors about the risks of social media stock recommendations. 🔗 Read more
• SEC Files Settled Action as to Georgia Investment Adviser for Allegedly Misappropriating Millions from Elderly Client. The Securities and Exchange Commission filed a settled action against Georgia resident Ejiro Ode Okuma for allegedly breaching fiduciary duties and misappropriating over $9.8 million from an elderly client’s assets. Okuma agreed to pay more than $13 million to settle the charges, which included violating several federal securities laws. The SEC’s investigation was conducted by the Atlanta Regional Office, and the litigation is being led by H.B. Roback. 🔗 Read more
• CFTC Withdraws Event Contracts Rule Proposal and Staff Sports Event Contracts Advisory. Washington - The Commodity Futures Trading Commission (CFTC) has withdrawn the notice of proposed rulemaking titled “Event Contracts” and CFTC Staff Letter 25-36, reflecting its commitment to lawful innovation. Chairman Michael S. Selig stated that the 2024 proposal, which prohibited political contracts, was a misguided attempt at merit regulation, and the Commission will pursue a new rulemaking aligned with the Commodity Exchange Act and Congressional intent. Additionally, the withdrawal of the 2025 sports event contracts advisory aims to eliminate confusion and uncertainty for market participants. 🔗 Read more
• EIOPA seeks input on adaptation measures in NatCat insurance under Solvency II. The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation to evaluate the prudential treatment of adaptation measures within the Solvency II framework, focusing on the balance between risk mitigation and capital requirements for natural catastrophe insurance. The consultation aims to assess the integration of micro-adaptation measures into insurance products, considering risk sensitivity, materiality, and proportionality, with feedback requested by April 17, 2026. This initiative is part of EIOPA’s efforts to address the significant natural catastrophe insurance protection gap in Europe and encourage insurers to promote adaptation measures through “impact underwriting.” 🔗 Read more
  

🗓️ February 5, 2026

• SEC Publishes Data on Exchange Traded Funds and Fund Mergers; Updated Statistics on Municipal Advisors, Transfer Agents, and Security-Based Swap Dealers. Washington D.C. - The Securities and Exchange Commission’s Division of Economic and Risk Analysis (DERA) has released two reports on exchange traded funds (ETFs) and fund mergers, along with updated data on municipal advisors, transfer agents, and security-based swap dealers (SBSDs). The reports highlight the rapid growth of active ETFs, which now rival passive funds in number, and the potential for fund mergers to reduce investor fees. Additionally, the SEC has updated its public statistics and data visualizations webpage to provide interactive and downloadable insights into market trends. 🔗 Read more
• SEC Obtains Final Consent Judgment Against Connecticut Resident Charged with Insider Trading in Multiple Securities. The U.S. District Court for the District of Connecticut issued a final judgment by consent against Ryan Squillante, a Connecticut resident, in the SEC’s civil enforcement action. Squillante was found to have used confidential information from his job at an investment firm to trade securities in at least ten companies, earning $216,965 in illegal profits. The judgment permanently enjoins him from further violations and orders him to disgorge $216,965, with the amount deemed satisfied by a criminal fine in a parallel case. 🔗 Read more
• SEC Obtains Final Consent Judgments Against Two Florida Residents Charged with Insider Trading in DWAC Securities. The U.S. District Court for the Southern District of New York entered final judgments against brothers Gerald Shvartsman and Michael Shvartsman in the SEC’s civil enforcement action, alleging they traded Digital World Acquisition Corporation securities based on nonpublic information about its merger with Trump Media & Technology Group Corp. The judgments permanently enjoin them from further violations and require Gerald to disgorge $4,640,325.25 and Michael to disgorge $18,269,042.98, with these obligations satisfied by previous forfeiture orders in parallel criminal matters. The SEC also voluntarily dismissed the action against Rocket One Capital LLC. 🔗 Read more
• SEC Charges Marat Likhtenstein in Connection with $4 Million Offering Fraud. The Securities and Exchange Commission filed charges against Marat Likhtenstein for an offering fraud scheme targeting the Russian-American Jewish community, raising over $4.1 million from at least 15 clients by falsely promising high returns through self-issued promissory notes. Likhtenstein allegedly misappropriated the funds, making Ponzi-like payments and spending on personal expenses, and was charged with multiple securities violations. He consented to a bifurcated settlement with injunctive relief, while a parallel criminal action was brought by the Kings County District Attorney’s Office. 🔗 Read more
• FDIC Issues List of Banks Examined for CRA Compliance. Washington - The Federal Deposit Insurance Corporation (FDIC) has released a list of state nonmember banks evaluated for compliance with the Community Reinvestment Act (CRA) in November 2025. The CRA, a 1977 law, mandates the FDIC to assess a bank’s efforts in meeting the credit needs of its community, including low- and moderate-income areas, while ensuring safe operations. Public disclosure of these evaluations has been required since July 1, 1990, and can be accessed through the FDIC’s Public Information Center or directly from the banks. 🔗 Read more
• Join us for ESMA’s Conference “A new era for EU capital markets” on 21 May 2026. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is organising a high‑level conference “A new era for EU capital markets” on 21 May 2026 in Paris, France. Marking ESMA’s 15-year anniversary, the conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as well as investor representatives. Discussions will focus on how to deepen market integration, strengthen supervision and improve the investor journey in support of the Savings and Investments Union (SIU). 🔗 Read more
  

🗓️ February 6, 2026

• SEC Charges Kentucky-Based Biopharmaceutical Company and Two Executives with Defrauding Investors. The Securities and Exchange Commission filed charges against CBA Pharma, Inc., its president Wayne Michael Putnam, and vice president Louis “Buzz” Carmichael for allegedly conducting a fraudulent securities offering that raised approximately $4.1 million from about 160 investors. The SEC’s complaint claims that from April 2023 to February 2024, the company misrepresented the efficacy of its drug CBT-1 in treating cancer and its proximity to FDA approval, despite the FDA having withdrawn the drug application due to insufficient evidence. The SEC seeks various penalties and injunctions against the company and its executives, with the investigation led by Tracy W. Lo and Nicholas Magena, and litigation by Eric Phillips and Timothy Stockwell. 🔗 Read more
• CFTC Staff Reissues Letter 25-40 Updating Payment Stablecoin Definition. Washington - The Commodity Futures Trading Commission’s Market Participants Division has reissued CFTC Staff Letter 25-40 with a revision allowing national trust banks to be permitted issuers of payment stablecoins for the no-action position. This change was made after realizing that national trust banks, which can issue payment stablecoins, were not initially intended to be excluded. Chairman Michael S. Selig highlighted the importance of these banks in the payment stablecoin ecosystem and the role of the GENIUS Act and the CFTC’s new eligible collateral framework in positioning America as a leader in payment stablecoin innovation. 🔗 Read more
• FDIC Extends Comment Period on Proposal to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins. Washington - The Federal Deposit Insurance Corporation (FDIC) announced a 90-day extension to the comment period on its notice of proposed rulemaking (NPR) regarding the application provisions under the GENIUS Act for FDIC-supervised state nonmember banks and state savings associations. The comment period is now extended from February 17, 2026, to May 18, 2026, to allow more time for public input. 🔗 Read more
• Results of the ECB Survey of Professional Forecasters for the first quarter of 2026. Headline and core HICP inflation expectations remained unchanged across all horizons, with expectations for 2026, 2027, and 2028 at 1.8%, 2.0%, and 2.1% respectively, and core inflation at 2.0% for all periods. Real GDP growth expectations were mostly unchanged, with a slight upward revision for 2026 to 1.2%, driven by better-than-expected GDP data for the third quarter of 2025. Unemployment rate expectations were unchanged for 2026 and 2027 but slightly lower for the longer term, with rates of 6.3%, 6.2%, and 6.1% expected for 2026, 2027, and 2028, respectively. 🔗 Read more

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