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Tag Archive: Dodd Frank


SimCorp Survey -released the findings of a poll conducted in March. Respondents included nearly 60 executives from 34DSC01210 capital market firms from around the world.Results show that 53% of capital markets respondents are not ready to centrally clear interest rate and credit default swaps.

With regulations like Dodd-Frank and EMIR aiming to increase transparency and market efficiency in over-the-counter (OTC) derivatives trading, the poll asked respondents whether or not their firms are ready to centrally clear interest rate swaps (IRS) and credit default swaps (CDS). While 41% answered yes, a 53% majority answered no. Continue reading

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Single Dealer platform a financial forum asked a very logical question to CFTC Has CFTC given too much power to SEFs ?images

Last week the CFTC passed the key rules that will govern how OTC derivatives will trade under the new Dodd-Frank regulatory framework.
By so doing, the CFTC has in effect devolved/transferred many important decisions regarding ‘where, and when’ swaps will trade over to the new market infrastructure and trading venues themselves, but will this give too much power to new trading venues?
One of the major rules that was passed, govern when a swap is ‘made available to trade’, or (MAT). This rule will determine which swaps are required to trade on Swap Execution Facilities (SEFs) or Designated Contract Markets (DCM).  Continue reading

The Global rules for the OTC derivatives have been implemented in the US and are imminent in Europe that will have imagessignificant long-term implications for how hedge funds, asset managers and regional banks execute, clear, and report their swap positions.

Jack Callahan Executive Director of OTC products and services at CME Group shared some of his views reading between the lines as second phase of the OTC clearing mandate that is required under the Dodd-Frank legislation. This means that those firms defined as part of Category 2 (hedge funds, asset managers and regional banks) that trade swaps must move very quickly to finalize central clearing arrangements. Continue reading

MARGIN COSTS OF OTC SWAP

Regulators of several countries, including the United States Commodity Futures Trading Commission (CFTC), have

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introduced or proposed rules requiring clearing of over-the-counter (OTC) derivatives through central counterparties. Clearing requirements in turn affect margin requirements, which are one key mechanism used by parties to mitigate counterparty risk. Although clearing rules help shield collateral from the insolvency of the secured party, they also may substantially increase financial and operational costs for the users of cleared derivatives because of the higher margin delivery requirements applicable to such transactions. Continue reading

The straightforward strategy of buying companies that have recently been spun off from their parent has generated very

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good results. The forces of divestiture and conglomeratization eternally wrestling with each other like gravity and energy in the cosmos.

How about this for a rational explanation:

Spin-offs generally result in more “pure play” stocks which then become more accurately valued in the marketplace. When the pre-spun-off business are tied Continue reading

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