Posts Tagged ‘Derivatives Reform’
Christmas Comes Early For Hedgers of FX Swaps & Forwards Under Dodd-Frank
At long last, the U.S. Treasury Department on Friday came out with the final determination that FX swaps and FX forwards will be exempt from mandatory trading and clearing under Dodd-Frank.
Read MoreTwo years later, the Dodd-Frank train has left the station.
With the passing of the Swap Definition rule on Tuesday, July 10th the clock really starts ticking as some key rules are going into effect this fall. Any rational person would assume that before you write rules governing Swaps, you start with the simple task of defining the Swap. Unfortunately life in the derivative world…
Read MoreShakespeare, Space Watches & A Sneak Preview of Rules at The GMAC CFTC Meeting
In what would normally be a fairly dry and serious four hour public hearing, the Global Markets Advisory Committee meeting held yesterday at the CFTC was full of laughs, multiple Shakespeare quotes and a general feeling of “we are the world” in its approach towards the OTC derivative reform.
Read MoreSwap Data Repositories (SDRs): Most Complex, Challenging Component of Dodd-Frank
I had the honor of participating at the joint CFTC/SEC public round table today on the topic of the Swap Data Repository (SDR). The session, which can be found at www.cftc.gov, covered a wide range of topics ranging from data standardization to confirmation workflow to reporting requirements to governance issues.
Read MoreEasy Part Was Passing Financial Reform: Devil In The Details of Rule Making
As the President gets his many pens ready to sign the historic Dodd-Frank bill into law amidst the smiles and flash bulbs of the cameras, it will be a different story at the CFTC and SEC where the hard work is just beginning. It will be primarily up to these two regulators to enact arguably…
Read MoreWill Europe Follow The Dodd-Frank Bill on OTC Derivative Reform? Comment Period Closes This Week
While the Democrats in the U.S. Senate missed their July 4 goal to get enough votes needed to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act, the clock is ticking for companies to comment to the European Commission ‘s Public Consultation on the Derivatives and Market Infrastructures. The deadline ends July 10 and…
Read MoreLatest Uproar With the Dodd-Frank Bill: Does The CFTC Want To Manage Margin Calls for Uncleared Trades?
Today’s Wall Street Journal Article: Late Change Sparks Outcry Over Finance-Overhaul Bill focuses on language struck at the last minute that has end-users fearing that at the end of the day they will have to post margin, despite the intent to allow them the option not to clear trades. My interpretation is that the instrument…
Read MoreForcing Banks to Spin off Swap Subsidiaries Will Hurt Liquidity & Goes Against Main Concepts of OTC Derivative Reform
The Senate proposal to spin-off derivative dealing desks from banks will be decided upon as we enter the final stretch of the long roadmap to complete the financial reform overhaul in the US.
Read MoreImpact of the Derivative Reform on Costs: Transparency, Efficiency, Liquidity and Capital
As we begin to move toward the final stages of legislation on the OTC derivatives market, let’s re-examine some of the factors that will ultimately impact costs to End-Users, post reform. There are areas where costs could increase under the reform and factors that could drive costs down: Potential Cost Increases: 1.End-Users being required to…
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