US watchdog proposes swap trader regulations


first_img Show Comments ▼ US watchdog proposes swap trader regulations KCS-content Wednesday 1 December 2010 8:23 pm whatsapp Congress meant this clause to avoid a repeat of AIG’s failure, caused by swaps and high leveraging. center_img whatsapp Share THE US futures regulator unveiled yesterday a key piece of its plan to toughen rules on trading in the vast swaps market, making clearer which firms will have to set aside more funds to cover their deals.After last-minute wrangling that underscored the strain facing agencies trying to implement the biggest financial regulatory overhaul since the Great Depression, the proposal defined which firms will be subject to capital and margin requirements as swap dealers and major swaps participants.An exempt commodity must have a book value less than $100m (£64m), have fewer than 15 swap counterparties, and less than 20 swaps as a dealer in less than a year. It is expected that only certain commodity hedgers can enter into swap agreements.The law also defines a “major swap participant”, or firms with large swap positions. The law also gives major swap participants status to participants with “substantial counterparty exposure” that may cause economic risk. More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.com Tags: NULLlast_img

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