Posts Tagged ‘Swap Data Repository (SDR)’
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 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 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 MoreReady to Report? Swap Dealers May Need to Report to SDRs as Early as July 2012
It is hard to see how Swap Dealers, MSPs, SEFs and DCOs can realistically and properly plan and implement a technology undertaking of this magnitude without having SDRs approved, let alone ready to go themselves.
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 MoreMore Clarity on the End-User Clearing Exemption: FAS 133 (ASC 815) Ratified, Small Banks in Limbo
The big fear of just relying on FAS 133 was for all of the end-users who would not get the clearing exemption because either they could not be bothered to comply with FAS 133 or because their hedging programs did not work well under FAS 133, like many commodity hedges. The CFTC’s approach does allow the flexibility to leverage FAS 133 documentation where a company can and use other approaches where a company cannot.
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