Download or read book Regulation and Supervision of the OTC Derivatives Market written by Ligia Catherine Arias-Barrera and published by Routledge. This book was released on 2018-05-11 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: The over-the-counter (OTC) derivatives market has captured the attention of regulators after the Global Financial Crisis due to the risk it poses to financial stability. Under the post-crisis regulatory reform the concentration of business, and risks, among a few major players is changed by the concentration of a large portion of transactions in the new market infrastructures, the Central Counterparties (CCPs). This book, for the first time, analyses the regulatory response of the United Kingdom and the United States, the two largest centres of OTC derivatives transactions, and highlights their shortcomings. The book uses a normative risk-based approach to regulation as a methodological lens to analyse the UK regime of CCPs in the OTC derivatives market. It specifically focuses on prudential supervision and conduct of business rules governing OTC derivatives transactions and the move towards enhancing the use of central clearing. The resulting analysis, from a normative risk based approach, suggests that the UK regime for CCPs does not fulfil what would be expected if a coherent risk based approach was taken. Our comments on the Dodd-Frank Act highlight that the incoherent adoption of risk-based approach to regulation affects the effectiveness of the US regime for CCPs. Such a regime does not follow the pace of events of ‘innovation risk’; in particular, the foreseeable changes FinTech will bring to the OTCDM and central clearing services. The second inadequacy of the US regime concerns the dual regulatory structure of the CFTC and the SEC, and the inadequate adoption of different and not well-coordinated regulatory strategies. We also analyse the cross-border implications of the US regime for non-US CCPs that provide clearing services to US market participants. Finally, we study the negative effects of the absence of a clearly defined resolution regime for CCPs.
Download or read book Fractures of the UK Regulation and Supervision of Central Counterparties in the OTC Derivatives Market written by Ligia Catherine Arias Barrera and published by . This book was released on 2016 with total page 746 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Recommendations for Central Counterparties written by Group of Ten. Committee on Payment and Settlement Systems and published by . This book was released on 2004 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Proposed Regulation of OTC Derivatives written by and published by . This book was released on 2012 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Following the global financial crisis, the G20 committed to improve the regulation and supervision of over-the-counter (OTC) derivatives markets as part of efforts to strengthen the international financial regulatory system. MAS announced in July 2011 that it will meet the objectives set by G20 as well as recommendations by the Financial Stability Board (FSB) on the implementation of these objectives. MAS proposes to expand the scope f the Securities and Futures Act, Chapter 289 (SFA) to regulate OTC derivatives: (a) mandate the central clearing and reporting of OTC derivatives; (b) extend the current regulatory regimes for market operators, clearing facilities and capital markets intermediaries to OTC derivatives; and (c) introduce a new regulatory regime for trade repositories."--Preface.
Download or read book Regulating Financial Derivatives written by Alexandra G. Balmer and published by Edward Elgar Publishing. This book was released on 2018-06-29 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book puts forward a holistic approach to post-crisis derivatives regulation, providing insight into how new regulation has dealt with the risk that OTC derivatives pose to financial stability. It discusses the implications that post crisis regulation has had on central counterparties and the risk associated with clearing of OTC derivatives. The author offers a novel solution to tackle the potential negative externalities from the failure of a central counterparty and identifies potential new risks arising from post crisis reforms.
Download or read book International Convergence of Capital Measurement and Capital Standards written by and published by Lulu.com. This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effective Regulation of the Over the counter Derivatives Market written by United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and published by . This book was released on 2009 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Risk Based Regulation Approach written by Ligia Catherine Arias-Barrera and published by . This book was released on 2016 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper addresses the question of whether risk-based regulation is an efficient approach to the regime of Central Counterparties (CCPs) in the OTC derivatives market. The discussions below will first attempt to throw some light on the way risk-based regulation operates. They highlight the benefits, limits and complexities tied to the adoption of this approach to regulation. The core of the study in this paper is the analysis concerning the parameters that risk-based regulation offers to assess the current regime of Central Counterparties in the OTC derivatives market in the UK. The paper explores the UK risk-based model of regulation and supervision governing OTC derivatives. It is specifically focused on prudential supervision and conduct of business rules governing OTC derivatives transactions and the increasing tendency to use Central Counterparties CCPs. Additionally, this study will identify and assess the risks to the regulator's objectives that are posed by the Central Counterparties CCPs, and to address those using various regulatory tools. Different models of regulation could be considered to analyse the new UK approach. However, this research uses the risk-based regulation -- adopted in the UK -- as a method of analysis of the OTC derivatives regulatory structure. The reason is that risk-based regulation is broad and feasible enough in the time framework of this research. Furthermore, this method is interesting, because it exposes the reality that there might be a limit on the resources that can be spent on controlling certain types of risk. In addition, the method allows analysis of how the studied regime is satisfying expectations regarding transparency and accountability.It is particularly interesting to use the risk-based regulation approach to analyse the UK regulation of CCPs. Indeed, a general concern after the Global Financial Crisis was that risk-based regulation tends to be operated in a manner that places too much emphasis on individual sites and that, as a result, this approach is slow to come to terms with systemic and cumulative risks. Therefore, this discussion leads to question the emphasis that has been placed on the regulation on CCPs in the UK. Is the risk-based regulation the approach assisting regulator in the effective management of systemic risk in the OTC derivatives market? Does it need to be complemented with other strategies of regulation?
Download or read book Derivative Market Competition written by Mr.Jens Nystedt and published by International Monetary Fund. This book was released on 2004-04-01 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent regulatory initiatives in the United States have again raised the issue of a 'level regulatory and supervisory playing field' and the degree of competition globally between over-the-counter (OTC) derivatives and organized derivative exchange (ODE) markets. This paper models some important aspects of how an ODE market interrelates with the OTC markets. It analyzes various ways in which an ODE market can respond to competition from the OTC markets and considers whether ODE markets would actually benefit from a more level playing field. Among other factors, such as different transaction costs, different abilities to mitigate credit risk play a significant role in determining the degree of competition between the two types of markets. This implies that a potentially important service ODE markets can provide OTC market participants is to extend clearing services to them. Such services would allow the OTC markets to focus more on providing less competitive contracts/innovations and instead customize its contracts to specific investors' risk preferences and needs.
Download or read book OTC Derivatives Bilateral Trading and Central Clearing written by David Murphy and published by Springer. This book was released on 2013-08-07 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the credit crisis, supervisors enacted a range of financial reforms. In particular, they radically changed the nature of the OTC derivatives market via a number of measures, notably mandatory central clearing. This book discusses the market before the crisis, explains what central clearing is, and outlines the consequences of the new rules.
Download or read book OTC Derivative Markets and Their Regulation written by United States. Commodity Futures Trading Commission and published by . This book was released on 1993 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Making OTC Derivatives Safe A Fresh Look written by Mr.Manmohan Singh and published by International Monetary Fund. This book was released on 2011-03-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent regulatory efforts, especially in the U.S. and Europe, are aimed at reducing moral hazard so that the next financial crisis is not bailed out by tax payers. This paper looks at the possibility that central counterparties (CCPs) may be too-big-to-fail entities in the making. The present regulatory and reform efforts may not remove the systemic risk from OTC derivatives but rather shift them from banks to CCPs. Under the present regulatory overhaul, the OTC derivative market could become more fragmented. Furthermore, another taxpayer bailout cannot be ruled out. A reexamination of the two key issues of (i) the interoperability of CCPs, and (ii) the cost of moving to CCPs with access to central bank funding, indicates that the proposed changes may not provide the best solution. The paper suggests that a tax on derivative liabilities could make the OTC derivatives market safer, particularly in the transition to a stable clearing infrastructure. It also suggests reconsideration of a "public utility" model for the OTC market infrastructure.
Download or read book Challenges Posed by OTC Derivatives written by Susan M. Phillips and published by . This book was released on 1992 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulation of the Over the counter Derivatives Market written by United States. Congress. House. Committee on Agriculture. Subcommittee on Risk Management and Specialty Crops and published by . This book was released on 1998 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Assessing Financial Regulatory Coordination and Integration with Reference to OTC Derivatives Regulation written by Andrew Godwin and published by . This book was released on 2017 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores important issues relating to regulatory coordination and integration in the international financial system. Coordination in a regulatory context refers to coordination between regulators in different jurisdictions to achieve desired regulatory outcomes, including effective supervision and enforcement over regulated entities, particularly those that operate on a cross-border basis. Integration refers to the process by which certain parts or aspects of one regulatory system are recognised by, or incorporated into, another regulatory system to produce a single, integral system that operates on a cross-border basis. Examples of integration range from the recognition by a regulator in one jurisdiction of a determination by the regulator in another jurisdiction for its own regulatory purpose to the adoption of a common set of rules for the purpose of regulating a certain area of activity. The paper considers the benefits of and challenges to regional coordination and integration, the potential principles and mechanisms that might be used to motivate and structure regional coordination and integration, and suggests a systematic set of criteria to evaluate which mechanism might be the most appropriate in any given context. The paper explores these issues with reference to the regulation of OTC derivatives trading and OTC derivatives markets.
Download or read book U S Regulation of the International Securities and Derivatives Markets written by and published by Aspen Law & Business Publishers. This book was released on 2002 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Future Regulation of Derivatives Market Is the Eu on the Right Track 10th Report of Session 2009 10 Report with Evidence written by Great Britain. Parliament. House of Lords. European Union Committee and published by The Stationery Office. This book was released on 2010 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inquiry conducted by Sub-committee A (Economic and Financial Affairs, and International Trade)
