Download or read book Swap Futures An Outcome of Burdensome Dodd Frank OTC Regulation written by P. D. Aditya and published by . This book was released on 2013 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis of 2007-2008 had led to establishment of many regulations in financial markets, mainly being the Dodd Frank Act (in US), European Markets Infrastructure Regulation (in EU regions). One of the main areas of focus by these regulations is on cleared over-the-counter (OTC) derivatives market. Prior to its regulation under Dodd-Frank, the OTC swaps markets were opaque, had very limited regulatory oversight without any central clearing requirements. Hence most of the swaps players chose to execute their swaps transactions in the OTC derivatives market. But after the Dodd-Frank Act, all OTC swaps trades are subjected to regulatory oversight, to be traded on a Swap Execution Facility (SEF), centrally cleared and reported to trade repositories. All these created a burden on financial institutions to be in compliant with these regulations. Hence all players in the industry are now reassessing the choice of venue for derivatives trades: the OTC swaps market or the futures market. The new calculus leads them out of swaps and into futures, which is the essence of the futurization of swaps. This paper explains about what led to the introduction of swap futures, how they are different from traditional swaps and the positive and negative impacts of futurization of swaps.
Download or read book Dodd Frank Wall Street Reform and Consumer Protection Act DF written by Michael K. Adjemian and published by DIANE Publishing. This book was released on 2011-04 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: The DF makes significant changes to Fed. regulation of the U.S. OTC derivatives markets. The act calls for swaps to be centrally cleared and traded on an exchange or execution facility and for dealers and major participants that trade these derivatives to be subject to collateral requirements. Although the act exempts certain types of swaps and traders from these clearing, collateral, and trading venue requirements in order to preserve market efficiency, all swaps will be subject to new record-keeping and reporting rules. This report reviews some important features of the new law and discuss their potential impact on agribusiness, much of which will depend on how the rules are written and implemented by regulators. This is a print on demand report.
Download or read book Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations Us Commodity Futures Trading Commission Regulation Cftc 2018 Edition written by The Law The Law Library and published by Createspace Independent Publishing Platform. This book was released on 2018-06-16 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations (US Commodity Futures Trading Commission Regulation) (CFTC) (2018 Edition) The Law Library presents the complete text of the Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations (US Commodity Futures Trading Commission Regulation) (CFTC) (2018 Edition). Updated as of May 29, 2018 On July 12, 2012, the Commodity Futures Trading Commission ("Commission" or "CFTC") published for public comment its proposed interpretive guidance and policy statement ("Proposed Guidance") regarding the cross-border application of the swaps provisions of the Commodity Exchange Act ("CEA"), as added by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act" or "Dodd-Frank"). On December 21, 2012, the Commission also proposed further guidance on certain aspects of the Proposed Guidance ("Further Proposed Guidance"). This book contains: - The complete text of the Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations (US Commodity Futures Trading Commission Regulation) (CFTC) (2018 Edition) - A table of contents with the page number of each section
Download or read book Still Floating written by Thomas Molony and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The over-the-counter derivatives market involves trillions of dollars. Before Congress enacted The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) in 2010, this enormous market largely was left unregulated. Dodd-Frank changed the playing field dramatically, subjecting over-the-counter derivatives to extensive new regulation by the Securities Exchange Commission (the “SEC”) and the Commodity Futures Trading Commission (the “CFTC”). About ten years before Dodd-Frank, the Commodity Futures Modernization Act of 2000 (the “CFMA”) had established that most over-the-counter derivatives were not securities for purposes of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). At the same time, the CFMA subjected a specific category of over-the-counter derivatives -- security-based swap agreements -- to the antifraud prohibitions under Securities Act § 17(a) and Exchange Act § 10(b) and Rule 10b-5. Since the CFMA was enacted, few courts have interpreted the term “security-based swap agreement” and only one has given it studied attention. Dodd-Frank narrowed the definition of the term and left the antifraud prohibitions in place. This Article examines the historical interpretation of the term “security-based swap agreement,” its application in recent SEC enforcement actions involving interest rate swaps and the continuing viability post-Dodd-Frank of having security-based swap agreements subject to the antifraud provisions of the Securities Act and the Exchange Act. It concludes that Congress should eliminate application of those antifraud provisions to security-based swap agreements because continuing to have them apply is unnecessary and undesirable after Dodd-Frank. The Article begins with a discussion of how the securities laws applied to swaps, the most common over-the-counter derivatives, prior to Dodd-Frank. After reviewing and critiquing the handful of opinions that have considered the scope of the term “security-based swap agreement,” the Article considers whether the interest rate swaps at issue in the recent SEC enforcement actions are security-based swap agreements. The Article next describes generally the jurisdictional division between the SEC and the CFTC under Dodd-Frank and how security-based swap agreements fit within the new regime. It then explores reasons to do away with the “security-based swap agreement” concept in the federal securities laws, while considering the possible benefits of retaining it. The Article ultimately concludes that Congress should eliminate the “security-based swap agreement” concept from the Securities Act and the Exchange Act and explains why its continuing presence in the federal securities laws is unnecessary and undesirable.
Download or read book Futurisation of Swaps OTC Market Regulation with MIFIR and MIFID II written by Sabrina Schleimer and published by . This book was released on 2018-08-16 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2018 in the subject Business economics - Investment and Finance, grade: 1,0, University of Strathclyde (Business School), course: Derivatives and Treasury Management, language: English, abstract: The necessity of increased stabilisation and regulation of financial markets, especially over-the-counter markets, has received increased international attention following the financial crisis of 2007-08.1 Previously, swap markets were largely 'in the dark' when compared to exchange traded derivatives. The reactionary regulation, the Dodd-Frank Act, has severely tightened the OTC swaps markets through standardisation, increased collateral requirements and reporting standards and a more refined clearing mandate; to continue our analogy, it has sought to bring the swaps market into the light. Due to this increased regulation and subsequent increased costs associated with trading swaps, large swathes of swap trading migrated onto futures exchanges, in a process known as swap futurisation. This offered market participants regulatory certainty as well as a reduction in some of the more onerous costs and requirements under the Dodd-Frank Act. With eight years of trading under the Dodd-Frank regulation, our investigation into the advantages and disadvantages of swap futurisation will focus on trends seen in American data. Following on we will look more closely at the European Union's response, namely the Markets in Financial Instruments Directive II and the Markets in Financial Instruments Regulation.
Download or read book Regulation Through Substitution as Policy Tool written by Gabriel D. Rosenberg and published by . This book was released on 2015 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently, significant market and regulatory attention has focused on a new trend known as “futurization” -- the recasting of economic arrangements previously transacted as swaps to trade as futures. This trend results from new regulations governing swap markets under the Dodd-Frank Act, which increase the cost of transacting in swaps. Given the magnitude of the business and economic interests at stake -- the swaps market is estimated at $633 trillion and the futures market is estimated to be $24 trillion -- the futurization trend has significant implications for the success of the Dodd-Frank Act's swap market reforms and can provide important insights to regulatory agencies as they seek to protect financial markets in the post-financial crisis environment.This Article is the first to provide an academic treatment of this trend and its implications for regulatory policymaking. We develop a simple economic model to explain how regulators can “regulate through substitution” by encouraging market participants to subject themselves to one regulatory regime versus another through the imposition of differential regulatory costs. By applying this model to three critical areas of CFTC swap rulemaking -- margin requirements, protection of customer collateral and public dissemination of swap trading data -- we predict the futurization effects of these regulations, which are in some cases contrary to what might be expected or desired. In doing so, we demonstrate how the common view of futurization as a trend affecting the swap markets in a uniform manner is overly simplistic and obscures the important lessons of futurization.Armed with this predictive tool, we believe that the CFTC can apply the regulation through substitution analysis to design regulations better to achieve its policy goals and to assess the costs and benefits of proposed regulations. This same tool can be used by other regulators that similarly oversee multiple related regulatory regimes to better implement their policy concerns in similar contexts.
Download or read book Regulating Fairness written by Gregory Scopino and published by . This book was released on 2015 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the years leading up to the financial crisis of 2008, investment banks used tactics that were misleading and unfair in marketing, selling and dealing in complex swaps and other over-the-counter derivatives. With the Dodd-Frank Act of 2010, Congress amended federal law to direct the futures and derivatives markets' regulator, the U.S. Commodity Futures Trading Commission (“CFTC”), to promulgate ethical business conduct standards for these swap dealers and major swap participants (“swap entities”), including a regulation requiring swap entities to communicate with counterparties in a fair and balanced manner based on principles of good faith and fair dealing. The CFTC fulfilled this directive by adopting Regulation 23.433 in 2012, but the rule merely mirrors the statutory text and the adopting release does not provide much information about the content of the good faith principles for swap entities. To provide context for the fair dealing rule, this Article examines and analyzes sources referenced in the rule's adopting release - namely, relevant National Futures Association (“NFA”) guidance and a Senate Report about the causes of the financial crisis. The Article concludes that an excluder conceptualization of good faith and fair dealing, as exemplified by Section 205 of the Restatement (Second) Contracts, would help to specify Regulation 23.433's strictures. Under an excluder conceptualization of good faith, a list of specific examples of the kinds of communications that would violate Regulation 23.433 - taken from NFA guidance and the Senate report - would clarify the fair dealing rule's prohibitions for market participants.
Download or read book OTC Derivatives Regulation Under Dodd Frank written by William Charles Meehan and published by . This book was released on 2016 with total page 784 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimating the Costs of Financial Regulation written by Mr.Andre Santos and published by International Monetary Fund. This book was released on 2012-09-11 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
Download or read book Dodd Frank written by Hester Peirce and published by . This book was released on 2013-01-01 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: More than 360,000 words in length, the Dodd-Frank Wall Street Reform and Consumer Protection Act is the longest and most complex piece of financial legislation in American history. The nature and magnitude of its effects, both intended and unintended, will become clearer as regulators exercise the broad discretion given to them under the law. In this new book, the contributors ask whether the law is an effective response to the financial crisis that so deeply rattled our nation. Taking a hard look at the law's celebrated objectives, they reveal that it not only fails to achieve many of its stated goals, it also creates dangerous regulatory pathologies that could lay the groundwork for the next crisis.
Download or read book Bad History Worse Policy written by Peter J. Wallison and published by Rowman & Littlefield. This book was released on 2013 with total page 598 pages. Available in PDF, EPUB and Kindle. Book excerpt: In his new book, "Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act," (AEI Press) Wallison argues that the Dodd-Frank Act -- the Obama administration's sweeping financial regulation law -- will suppress economic growth for years to come. Based on his essays on financial services issues published between 2004 and 2012, Wallison shows that the act was based on a false and ideologically motivated narrative about the financial crisis." -- Provided by publisher.
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 Securities Market Issues for the 21st Century written by Merritt B. Fox and published by . This book was released on 2018 with total page 476 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reauthorization of the Commodity Futures Trading Commission written by United States. Congress. Senate. Committee on Agriculture, Nutrition, and Forestry and published by . This book was released on 2014 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Post Reform Guide to Derivatives and Futures written by Gordon F. Peery and published by John Wiley & Sons. This book was released on 2012-02-01 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: An in-depth look at the best ways to navigate the post-reform world of derivatives and futures The derivatives market is one of the largest, and most important financial markets in the world. It's also one of the least understood. Today we are witnessing the unprecedented reform and reshaping of this market, and along with these events, the entire life cycle of a derivatives transaction has been affected. Accordingly, nearly all market participants in the modern economy need to view the handling of risk by derivatives in a very different way. Many aspects of financial services reform are based on a belief that derivatives caused the Great Recession of 2008. While the difficulties we now face cannot be blamed solely on derivatives, the need to understand this market, and the financial products that trade within it, has never been greater. The Post-Reform Guide to Derivatives and Futures provides straightforward descriptions of these important investment products, the market in which they trade, and the law that now, after July 16, 2011, governs their use in America and creates challenges for investors throughout the world. Author Gordon Peery is an attorney who works exclusively in the derivatives markets and specializes in derivatives and futures reform and market structure. Since representing clients in Congressional hearings involving Enron Corp., he has developed extensive experience in this field. With this guide, he reveals how derivatives law, and market practice throughout the world, began to change in historic ways beginning in 2011, and what you must do to keep up with these changes. Explains what derivatives and futures are, who trades them, and what must be done to manage risk in the post reform world Accurately reflects the futures and derivatives markets as they exist today and how they will be transformed by the Dodd-Frank Wall Street Reform and Consumer Protection Act Highlights the risks and common disputes regarding derivatives and futures, and offers recommendations for best practices in light of the evolving law governing derivatives The financial crisis has changed the rules of Wall Street, especially when it comes to derivatives and futures. The Post-Reform Guide to Derivatives and Futures will help you navigate this evolving field and put you in a better position to make the most informed decisions within it.
Download or read book Building the New Derivatives Regulatory Framework written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs and published by . This book was released on 2011 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Oversight of Dodd Frank Implementation written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs and published by . This book was released on 2011 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt:
