Download Full eBooks in PDF
Otc Derivatives Regulation Under Dodd Frank Book in PDF, ePub and Kindle version is available to download in english. Read online anytime anywhere directly from your device. Click on the download button below to get a free pdf file of Otc Derivatives Regulation Under Dodd Frank book. This book definitely worth reading, it is an incredibly well-written.
Author : William Charles Meehan,Gabriel D. Rosenberg
Publisher : Unknown
Page : 483 pages
File Size : 45,7 Mb
Release : 2014
Category : Clearing of securities
ISBN : 0314623477
Author : William Charles Meehan,Gabriel D. Rosenberg
Publisher : Unknown
Page : 784 pages
File Size : 52,6 Mb
Release : 2016
Category : Clearing of securities
ISBN : 0314648003
Author : William Charles Meehan,Gabriel D. Rosenberg
Publisher : Unknown
Page : 750 pages
File Size : 53,8 Mb
Release : 2015
Category : Clearing of securities
ISBN : 0314638237
Author : Rena S. Miller,Kathleen Ann Ruane
Publisher : Createspace Independent Pub
Page : 28 pages
File Size : 51,9 Mb
Release : 2012-11-21
Category : Business & Economics
ISBN : 148106374X
The financial crisis implicated the over-the-counter (OTC) derivatives market as a major source of systemic risk. A number of firms used derivatives to construct highly leveraged speculative positions, which generated enormous losses that threatened to bankrupt not only the firms themselves but also their creditors and trading partners. Hundreds of billions of dollars in government credit were needed to prevent such losses from cascading throughout the system. AIG was the best-known example, but by no means the only one. Equally troublesome was the fact that the OTC market depended on the financial stability of a dozen or so major dealers. Failure of a dealer would have resulted in the nullification of trillions of dollars' worth of contracts and would have exposed derivatives counterparties to sudden risk and loss, exacerbating the cycle of deleveraging and withholding of credit that characterized the crisis. During the crisis, all the major dealers came under stress, and even though derivatives dealing was not generally the direct source of financial weakness, a collapse of the $600 trillion OTC derivatives market was imminent absent federal intervention. The first group of Troubled Asset Relief Program (TARP) recipients included nearly all the large derivatives dealers. The Dodd-Frank Act (P.L. 111-203) sought to remake the OTC market in the image of the regulated futures exchanges. Crucial reforms include a requirement that swap contracts be cleared through a central counterparty regulated by one or more federal agencies. Clearinghouses require traders to put down cash (called initial margin) at the time they open a contract to cover potential losses, and require subsequent deposits (called maintenance margin) to cover actual losses to the position. The intended effect of margin requirements is to eliminate the possibility that any firm can build up an uncapitalized exposure so large that default would have systemic consequences (again, the AIG situation). The size of a cleared position is limited by the firm's ability to post capital to cover its losses. That capital protects its trading partners and the system as a whole. Swap dealers and major swap participants—firms with substantial derivatives positions—will be subject to margin and capital requirements above and beyond what the clearinghouses mandate. Swaps that are cleared will also be subject to trading on an exchange, or an exchange-like “swap execution facility,” regulated by either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC), in the case of security-based swaps. All trades will be reported to data repositories, so that regulators will have complete information about all derivatives positions. Data on swap prices and trading volumes will be made public. The Dodd-Frank Act provides exceptions to the clearing and trading requirements for commercial end-users, or firms that use derivatives to hedge the risks of their nonfinancial business operations. Regulators may also provide exemptions for smaller financial institutions. Even trades that are exempt from the clearing and exchange-trading requirements, however, will have to be reported to data repositories or directly to regulators.
Author : Ligia Catherine Arias-Barrera
Publisher : Routledge
Page : 280 pages
File Size : 45,6 Mb
Release : 2018-05-11
Category : Business & Economics
ISBN : 9781351797719
The over-the-counter (OTC) derivatives market has captured the attention of regulators after the Global Financial Crisis due to the risk it poses to financial stability. Under the post-crisis regulatory reform the concentration of business, and risks, among a few major players is changed by the concentration of a large portion of transactions in the new market infrastructures, the Central Counterparties (CCPs). This book, for the first time, analyses the regulatory response of the United Kingdom and the United States, the two largest centres of OTC derivatives transactions, and highlights their shortcomings. The book uses a normative risk-based approach to regulation as a methodological lens to analyse the UK regime of CCPs in the OTC derivatives market. It specifically focuses on prudential supervision and conduct of business rules governing OTC derivatives transactions and the move towards enhancing the use of central clearing. The resulting analysis, from a normative risk based approach, suggests that the UK regime for CCPs does not fulfil what would be expected if a coherent risk based approach was taken. Our comments on the Dodd-Frank Act highlight that the incoherent adoption of risk-based approach to regulation affects the effectiveness of the US regime for CCPs. Such a regime does not follow the pace of events of ‘innovation risk’; in particular, the foreseeable changes FinTech will bring to the OTCDM and central clearing services. The second inadequacy of the US regime concerns the dual regulatory structure of the CFTC and the SEC, and the inadequate adoption of different and not well-coordinated regulatory strategies. We also analyse the cross-border implications of the US regime for non-US CCPs that provide clearing services to US market participants. Finally, we study the negative effects of the absence of a clearly defined resolution regime for CCPs.
Author : United States. Congress. House. Committee on Financial Services
Publisher : Unknown
Page : 388 pages
File Size : 47,6 Mb
Release : 2011
Category : Business & Economics
ISBN : MINN:31951D03457296Z
Author : Mr.Manmohan Singh
Publisher : International Monetary Fund
Page : 24 pages
File Size : 48,8 Mb
Release : 2011-03-01
Category : Business & Economics
ISBN : 9781455228041
Recent regulatory efforts, especially in the U.S. and Europe, are aimed at reducing moral hazard so that the next financial crisis is not bailed out by tax payers. This paper looks at the possibility that central counterparties (CCPs) may be too-big-to-fail entities in the making. The present regulatory and reform efforts may not remove the systemic risk from OTC derivatives but rather shift them from banks to CCPs. Under the present regulatory overhaul, the OTC derivative market could become more fragmented. Furthermore, another taxpayer bailout cannot be ruled out. A reexamination of the two key issues of (i) the interoperability of CCPs, and (ii) the cost of moving to CCPs with access to central bank funding, indicates that the proposed changes may not provide the best solution. The paper suggests that a tax on derivative liabilities could make the OTC derivatives market safer, particularly in the transition to a stable clearing infrastructure. It also suggests reconsideration of a "public utility" model for the OTC market infrastructure.
Author : James K. Jackson,Rena S. Miller
Publisher : Createspace Independent Pub
Page : 58 pages
File Size : 45,8 Mb
Release : 2013-03-13
Category : Political Science
ISBN : 1482762145
Derivatives, or financial instruments whose value is based on an underlying asset, played a key role in the financial crisis of 2008-2009. Congress directly addressed the governance of the derivatives markets through the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank; P.L. 111-203; July 21, 2010). This Act, in Title VII, sought to bring the largely unregulated over-the-counter (OTC) derivatives markets under greater regulatory control and scrutiny. Pillars of this approach included mandating that certain OTC derivatives be subject to central clearing, such as through a clearinghouse, which involves posting margin to cover potential losses; greater transparency through trading on exchanges or exchange-like facilities; and reporting trades to a repository, among other reforms. In the debates over Dodd-Frank and in subsequent years, many in Congress have raised the following important questions: If the United States takes stronger regulatory action than other countries, will business in these OTC derivatives markets shift overseas? Since OTC derivatives markets are global in nature, could derivatives trading across borders, or business for U.S. financial firms that engage in these trades, be disrupted if other countries do not adopt similar regulatory frameworks? The first step in addressing these congressional concerns is to examine the degree to which other major countries have adopted similar legislation and regulation as the United States, particularly in light of commitments from the Group of Twenty nations (G-20) to adopt certain derivatives reforms. Following the financial crisis, G-20 leaders (generally political heads of state) established a reform agenda and priorities within that agenda for regulating and overseeing OTC derivatives. The G-20 as an organization has no enforcement capabilities, but relies on the members themselves to implement reforms. According to recent surveys, most members are making progress in meeting the self-imposed goal of implementing major reforms in derivatives markets. Only the United States appears to have met all the reforms endorsed by the G-20 members within the desired timeframe of year-end 2012. The European Union (EU), Japan, Hong Kong, and the United States have each taken significant steps towards implementing legislation requiring central clearing. However, in most of these jurisdictions legislation has not yet been followed up with technical implementing regulations for the requirements to become effective, according to the Financial Stability Board (FSB), which conducts the surveys. Most authorities surveyed estimated that a significant proportion of interest rate derivatives would be centrally cleared by year-end 2012, but they were less confident of progress for other asset classes. The EU appeared to be making progress in its G-20 derivatives regulatory commitments, particularly in central clearing and trade repository-reporting requirements, but at a slower pace than the United States, according to the FSB. This may be due in part to the need for legislation to be passed by individual national legislatures even when agreed broadly by the EU. As of October 2012, however, only the United States had adopted legislation requiring standardized derivatives to be traded on exchanges and electronic platforms. This report examines the G-20 recommendations for reforming OTC derivatives markets and presents the result of self-assessment surveys measuring the performance of G-20 members and some FSB members to date in meeting their commitments. The Appendix to the report presents more detailed information on the status of individual jurisdictions in implementing the G-20- endorsed reforms. The Glossary defines key international bodies and related financial terms and concepts.
Author : Alexandra G. Balmer
Publisher : Edward Elgar Publishing
Page : 256 pages
File Size : 41,7 Mb
Release : 2018-06-29
Category : Law
ISBN : 9781788111928
This book puts forward a holistic approach to post-crisis derivatives regulation, providing insight into how new regulation has dealt with the risk that OTC derivatives pose to financial stability. It discusses the implications that post crisis regulation has had on central counterparties and the risk associated with clearing of OTC derivatives. The author offers a novel solution to tackle the potential negative externalities from the failure of a central counterparty and identifies potential new risks arising from post crisis reforms.
Author : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs
Publisher : Unknown
Page : 132 pages
File Size : 47,8 Mb
Release : 2011
Category : Business & Economics
ISBN : MINN:31951D035511740
Author : Michael K. Adjemian
Publisher : DIANE Publishing
Page : 21 pages
File Size : 52,5 Mb
Release : 2011-04
Category : Business & Economics
ISBN : 9781437942576
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.
Author : Eric Helleiner,Stefano Pagliari,Irene Spagna
Publisher : Oxford University Press
Page : 336 pages
File Size : 45,7 Mb
Release : 2018-02-07
Category : Political Science
ISBN : 9780190864590
In the wake of the 2008 global financial crisis, the regulation of the world's enormous derivatives markets assumed center stage on the international public policy agenda. Critics argued that loose regulation had contributed to the momentous crisis, but lasting reform has been difficult to implement since. Despite the global importance of derivatives markets, they remain mysterious and obscure to many. In Governing the World's Biggest Market, Eric Helleiner, Stefano Pagliari, and Irene Spagna have gathered an international cast of contributors to rectify this relative neglect. They examine how G20 governments have developed a coordinated international agenda to enhance control over these markets, which had been allowed to grow largely unchecked before the crisis. In analyzing this reform agenda, they advance three core arguments: first, the agenda to rein in these enormous markets has many limitations; second, the reform process has been plagued by delays, inconsistencies, and tensions that fragment the governance of these markets; and third, the politics driving the reforms have been extremely complicated. An authoritative overview of how this vast system is governed, Governing the World's Biggest Market looks at how the goals, limitations, and outcomes of post-crisis initiatives to regulate these markets have been influenced by a complex combination of transnational, inter-state, and domestic political dynamics. Moreover, this volume emphasizes how crucial regulatory reform is to stabilizing the global economy long-term.
Author : Sabrina Schleimer
Publisher : GRIN Verlag
Page : 17 pages
File Size : 47,6 Mb
Release : 2018-08-20
Category : Business & Economics
ISBN : 9783668776579
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.
Author : Raffaele Scalcione
Publisher : Kluwer Law International B.V.
Page : 458 pages
File Size : 47,5 Mb
Release : 2011-01-01
Category : Law
ISBN : 9789041134301
It is now widely recognized that an uncontrolled "derivatives revolution" triggered one of the most spectacular worst-case scenarios of modern times. This book - the most cogent legal analysis of the subject yet to appear in any language - lays bare the core role played by the failure to adequately regulate derivatives in the financial crisis of recent years. The author's insistence that derivatives must be viewed not as profit-seeking investments but as risk management tools - and his well-grounded prescriptions to ensure that they are regulated in that way - sheds clear light on the best way for companies, financial institutions, and hedge funds to move forward in their use of these useful but highly hazardous instruments. This book clearly shows how such elements as the following fit into the legal analysis of derivatives, and how proper regulation will preserve their usefulness and economic value: ; derivatives allow for the most efficient and cost-effective risk fractioning, hence risk taking, techniques ever conceived; derivatives allow for all measurable and identifiable risks that may exist in modern finance; the ability to isolate risks and insure against risk exposures is the key to the very survival of modern financial markets; risk buyers effectively take on financial exposure to various types of risk while hedgers unload unwanted exposures; derivatives allow domestic investors to acquire exposure to foreign markets without the necessity of dealing with foreign laws, foreign investments, currency exchange, or foreign fiscal regimes; derivatives increase social welfare by making it easier and less expensive to carry out many types of financial transactions; derivatives allow governments to insulate, manage, hedge or concentrate risks deriving from financial, meteorological, and even geopolitical exposure; and derivatives allow radical changes to financial and risk structure to be performed silently and rapidly. To the question: how do we ensure that a company trading derivatives is regulated effectively? this work offers a clear and convincing answer. The author's detailed recommendations for regulatory and corporate governance measures are designed to prevent excessive risk taking, the emergence of rogue traders, and ultimately the emergence of another systemic disturbance caused by chains of derivatives-related losses.
Author : Andrea Geat
Publisher : Lulu.com
Page : 250 pages
File Size : 46,8 Mb
Release : 2016-01-08
Category : Derivative securities
ISBN : 9789881384508
This book takes the ISDA Master Agreement (including the Credit Support Annex) as the benchmark for any OTC Derivatives documentation negotiation and explains the relevant "DOs and DON'Ts" when it comes to the most commonly negotiated terms, providing sufficient background to help the reader make an informed decision in relation to important elections. Particular focus is on a number of areas that include but are not limited to: the ISDA modular structure: 1992 and 2002 versions, the ISDA Credit Support Annex (Title Transfer - English Law and Pledge - New York and Japanese Law), practical insights about negotiating the ISDA and CSA, the ISDA protocols and other documentation initiatives linked to EMIR and Dodd-Frank, OTC Clearing, FATCA, Asia-Pacific Regulatory overview, Give-up trading models and documentation. There is no pretention to provide the basis for the perfect negotiation strategy or approach, but there are enough negotiation tips, sample provisions and case law references to help the readers understand what is important, permissible and sensible so as to drive the negotiation effectively. The sample provisions and documentation presented in this book are for reference only and serve the sole purpose of explaining the inherent impact and significance of the underlying topics, risks and issues calling for the inclusion of certain terms. By no means this book should be read or seen as a collection of provisions or templates for general use.
