Cassini Systems and IHS Markit have announced that they are partnering to automate the calculation of margin estimates within the latter’s ThinkFolio service. They claim that the collaboration will, for the first time, provide pre-trade analytics for OTC and exchange-traded derivatives directly within ThinkFolio. Global regulatory updates such as EMIR and Dodd-Frank have resulted in […]
I read this week that UBS’ compliance head Markus Ronner believes that while they will inevitably remain high, compliance costs for the banking industry have peaked. There are undoubtedly a host of financial markets’ participants out there who fervently hope he is right, actually if it comes down to it, I hope he’s right! The […]
FIA and the FIA Principal Traders Group (FIA) have submitted a detailed letter in reposnse to a US Commodity Futures Trading Commission (CFTC) proposed rule making that urges the Commission to retain the current $8 billion de minimis threshold for swap dealer registration.
The associations also suggest the CFTC modifies the calculation methodology to “better align it with the goals of a well-regulated derivatives market”.
The letter states that the FIA supports the proposed $8 billion de minimis threshold for swap dealer registration purposes, as well as excepting swaps that are exchange-traded and/or cleared from de minimis calculations, without a notional backstop or haircut.
A new report warns that US banks are using an obscure regulatory footnote to circumvent the swaps market provisions contained within Dodd-Frank.
The report was written by Michael Greenberger, a professor at the Maryland Carey School of Law and a former director of the Division of Trading and Markets at the Commodity Futures Trading Commission (CFTC), who has also served as counselor to the United States Attorney General in 1999 and as the US Justice Department’s Principal Deputy Associate Attorney General. It was published by the Institute for New Economic Thinking (INET).
A new blog by economists at the Federal Reserve Bank of New York (NY Fed) shows that ratings agencies and financial markets are divided about whether the Dodd-Frank Act has significantly reduced the “too big to fail” problem.
Noting that one of the goals of Dodd-Frank was to end “too big to fail”, the blog points out that to this end, the Act required systemically important financial institutions to submit detailed plans for an orderly resolution (“living wills”) and authorised the Federal Deposit Insurance Corporation (FDIC) to create an alternative resolution procedure.
The response from the FDIC was to create a “single point of entry” (SPOE) strategy, announced in December 2013, in which healthy parent companies bear the losses of their failing subsidiaries.
Micah Green, a partner at Steptoe and Johnson, addresses the future of Swap Execution Facilities (SEFs) now that Christopher Giancarlo is the chairman of the US Commodity Futures Trading Commission.
Green points out that Giancarlo was working in the financial services industry during the initial roll out of Dodd-Frank and the SEF rules that were implemented as a result of this legislation.
“I think it became clear to him, and I think it’s reflected in his white paper on swap execution rules, that the SEF rules that were adopted in a relative rush post-Dodd-Frank missed the mark from his perspective as to what the statute required,” says Green, who adds that CFTC staff are beginning to draft now swap execution rules as a result.
The Foreign Exchange Professionals Association (FXPA) will be promoting the FX Global Code of Conduct given that it addresses so many issues that the association has already been working on, according to its chairman.
“There’s a preamble in the Code that it wants to promote a robust, fair, liquid, open, transparent market and those are the exact same adjectives that we use in the FXPA [mission statement], and so we look at this as being very complementary to our mission and we’re certainly going to be promoting the Code,” says Chip Lowry, senior managing director at State Street Global Markets and chairman of the FXPA.
GreenKey Technologies has announced a global partnership with Red Box Recorders, a provider of voice recording technology and services, to create an integrated solution for embedded compliance recording within GreenKey’s software-based trader collaboration offering.
Red Box technology records voice conversations over soft client phones, turrets and mobile devices and the firms say that clients can use it with the trade and communications analytics, monitoring and archiving capabilities of GreenKey’s Enterprise Voice Collaboration platform to provide complete records of trade activities.
Galen Stops takes a look at Republican attempts to repeal the Dodd-Frank Act
On Thursday last week, the US House of Representatives approved the Financial Choice Act (Choice Act), which would repeal major elements of the Dodd-Frank Act. But what does this actually mean in practice?
Well, if it is enacted, the bill passed by the House will lead to a whole range of changes to Dodd-Frank.
For starters, the Choice Act would implement significant changes to Title 1 of Dodd-Frank, entitled “Regulatory Relief for Strongly Capitalised, Well-Managed Banking Organizations”, which would specifically alter the remit of the Financial Stability Oversight Council (FSOC).
Following the news that he had been nominated by the Trump administration to be the new chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, has laid out a new agenda for the Commission.
Speaking at the FIA Boca conference in Florida, Giancarlo emphasised the need for the CFTC to foster economic growth in the markets that it oversees by reducing regulatory burden, improving market intelligence and embracing new technology.
To help reduce the regulatory burden on derivatives market participants, Giancarlo announced the launch of “Project KISS”, with the acronym standing for “Keep It Simple Stupid”.