Posts Tagged ‘OTC derivatives market’
Would Dodd-Frank have prevented Bob Citron bankrupting the OC in 1994?
Stringent accounting rules and Dodd Frank regulation would have gone a long way in the towards stemming the losses in the Orange County debacle, but weak internal controls with individual intent on creating amazing market returns, is a recipe for financial disaster.
Read MoreVerdict on regulation of Fx Swaps & Forwards: still waiting, but reporting to SDRs will be required
Foreign Exchange dealers, hedgers, SEFs and DCOs eagerly awaited clarification on whether or not FX swaps and forwards would be classified as a Swap under the CFTC definitional rule passed on July 10th. Almost two years ago, the U.S. Treasury secretary had received the option under Dodd-Frank to determine if these commonly used derivatives should…
Read MoreOTC Derivative Volumes Rise: But Do We Know Why?
The Bank for International Settlements reported that OTC derivative volumes increased to a record $708 trillion, up 18% for the first half of 2011. I have some theories on why.
Read MoreEnd-User Clearing Exemption Marginalized By Swap Dealer Margin Rules
Reval CEO Jiro Okochi urges End-Users to pick up the pen or make the pilgrimage to DC before the proposed margin requirements issued by the Prudential Regulators and CFTC become final, as they will have a direct cost impact on End-Users, whether it’s through legal fees or the cost to fund the posting of collateral.
Read MoreEnd of Comments to CFTC on End-User Exemption
The door has closed on comments to the CFTC on the end-user exemption, and hopefully the final rule will not have any surprises in it.
Read MoreAre You An MSP? FAS 133 (ASC 815) Bringing Some New Value
This week the CFTC issued its definitions around the controversial Major Swap Participant (MSP) category required by the Dodd-Frank bill. The intent of the bill was to capture previously unregulated (i.e. non bank) active swap participants who could cause systemic risk.
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…
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