Christine
04-13-2012, 12:06 AM
U.S. derivatives regulators are considering a threshold above $3 billion for determining which banks, hedge funds and energy firms are swap dealers under the Dodd-Frank Act.
According to various news sources, the SEC and CFTC are discussing when the “aggregate gross notional value” of a company’s dealing business requires registration as a swap-dealer.***** The initial proposal of $100-million threshold was made in 2010.**** This year the threshold number was raised to $3 billion and further possibility of a threshold as high as $8 billion is considered.
Post Dodd-Frank Act, SEC and CFTC are required to determine when companies are dealers and should face the highest capital and collateral requirements.**** The law was designed to reduce risk and increase transparency in the $708 trillion global swaps market after 2008 credit crisis.
This regulation would mostly affect large firms, such as JPMorgan Chase & Co., Bank of America Corp. Citigroup Inc, Morgan Stanley and Goldman Sachs Group.**** In aggregate, these companies control 95 percent of cash and derivatives trading for U.S. bank holding companies as of December 31, 2011.
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=KLzE5bM80eM:CISBSOXOKf0:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:qj6IDK7rITs)
Read more... (http://feedproxy.google.com/~r/forexlive-rss/~3/KLzE5bM80eM/)
According to various news sources, the SEC and CFTC are discussing when the “aggregate gross notional value” of a company’s dealing business requires registration as a swap-dealer.***** The initial proposal of $100-million threshold was made in 2010.**** This year the threshold number was raised to $3 billion and further possibility of a threshold as high as $8 billion is considered.
Post Dodd-Frank Act, SEC and CFTC are required to determine when companies are dealers and should face the highest capital and collateral requirements.**** The law was designed to reduce risk and increase transparency in the $708 trillion global swaps market after 2008 credit crisis.
This regulation would mostly affect large firms, such as JPMorgan Chase & Co., Bank of America Corp. Citigroup Inc, Morgan Stanley and Goldman Sachs Group.**** In aggregate, these companies control 95 percent of cash and derivatives trading for U.S. bank holding companies as of December 31, 2011.
http://feeds.feedburner.com/~ff/forexlive-rss?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/forexlive-rss?i=KLzE5bM80eM:CISBSOXOKf0:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:V_sGLiPBpWU) http://feeds.feedburner.com/~ff/forexlive-rss?d=qj6IDK7rITs (http://feeds.feedburner.com/~ff/forexlive-rss?a=KLzE5bM80eM:CISBSOXOKf0:qj6IDK7rITs)
Read more... (http://feedproxy.google.com/~r/forexlive-rss/~3/KLzE5bM80eM/)