In order to monitor systemic risks as near to real-time as possible regulators have introduced the requirement for market participants to report all OTC derivatives trading activity to swap data repositories (SDR).The aim is to boost transparency and surveillance capability. The idea is strikingly elegant, yet fraught with complexity whenRead More
Post Tagged with: "clearing"
Collateral: banks, broker-dealers, funds and clearinghouses all need it more than ever. Collateralization of bilateral as well as cleared OTC trades is essential to ensure a functioning and stable financial market that is able to absorb potential shocks of Lehman-esque dimensions. Upcoming regulations like Basel III, Dodd-Frank and EMIR andRead More
After almost two years since the Dodd-Frank Act (DFA) was put on the statute books, the first swap-related articles finally take effect on 12th October this year. Now everyone can be assured they are trading, clearing and reporting under a common set of rules, right? Not so. While DFA requiresRead More
“[…] The financial crisis that began in 2007 had its origins precisely in over-complex regulation.” These are the wise words of Niall Ferguson, Professor of History at Harvard, speaking at this year’s BBC Reith Lectures. He goes on to cite Dodd-Frank as a near-perfect example of excessive complexity in legislation.Read More
Just three years ago the G20 leaders agreed upon a common course to regulate the financial markets, with focus on standardising OTC derivatives. In that time regulators have created the largest reform packages since the dawn of modern financial history including Dodd-Frank and the European Market Infrastructure Regulation (EMIR). ButRead More