"A navigation tool that organizes and distills Practical Law's extensive library of resources on rules and releases in the area of swaps and derivatives under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as well as related regulatory activity."
"This Note details rules and rulemaking under Title VII of the Dodd-Frank Act covering swap clearing and exchange trading and related matters such as rules for swap clearinghouses and exchanges."
"This Note provides a comprehensive summary of the provisions of Title VII of the Dodd-Frank Act as well as related rulemaking and other applicable Dodd-Frak provisions covering both swaps (non-security-based swaps) and security-based swaps."
"The OTC fixed income markets are changing due to a variety of catalysts. Regulatory reform is forcing large banks to reassess their business models. Inflated government budgets, slow economic growth, and low inflation are making debt more attractive. Accommodative monetary policies are artificially keeping interest rates in check, fueling an unabated pipeline of debt issuance. Asset owners are increasingly growing larger and more concentrated. Investment philosophies are converging, becoming more symmetrical. It seems while the size of the market is growing, the universe of players that operate within that market is getting less diverse."
"The Dodd-Frank Act has imposed nearly 400 new regulations since its inception. This will inevitably come at a cost. It is estimated that Dodd Frank compliance across the eight largest banks costs up to $34 billion a year. In order to secure the investment required for this level of compliance, banks have had to downsize certain businesses and departments, in turn impacting their overall revenue. The dilemma of maintaining compliance whilst maintaining revenue is a work in progress. It has only been 5 years since Dodd Frank went live and financial institutions are still working through the teething problems. Moreover, with roughly one quarter of the law still to be implemented, the true economic impact will not be understood for years to come."
"Sometimes knowing what not to invest in is better than knowing what to buy. No longer hiding in plain sight are the public unfunded state, city and teachers pension liabilities. The numbers are staggering. Some of our elected officials have chosen to load their unfunded liabilities onto the backs of municipal bond investors. Don’t fall for it."
"Covered bonds from outside Europe could be forced to meet onerous swaps rules while those from Europe escape, unless the Basel Committee and European regulators can forge a consensus. Earlier this month the Basel Committee on Bank Supervision released a document suggesting that covered bonds would not be excluded from two way swap agreements."
"The tranching and distribution of risk on portfolios of credit default swaps is back, with issuance reaching $20 billion last year, but it bears the lessons of the crisis. Deals are simpler and more balanced, banks are retaining less risk and growth is expected to be modest"
"High clearing fees on the Korea Exchange (KRX) means that won swap dealers with the capacity to do so are conducting their trades via offshore bilateral swaps in order to avoid the onshore clearing mandate, according to a January study by the Bank of Korea (BOK)."
"Meeting trade reporting requirements has been a big expense for many market participants. With further reporting regulations and enhancements on the horizon and regulators examining trade data, participants face a fundamental question: Can they afford to continue with their current solutions? In this paper, Sapient Global Markets’ Randall Orbon, Arun Karur and Cian Ó Braonáin discuss the state of trade reporting and show how growing costs, complexity and regulatory scrutiny are fueling a compelling business case for third-party managed solutions."
"2014 saw the average cost of buying out a defined benefit (DB) pension plan remain largely stable relative to the value of accounting liabilities across five key DB pension markets, according to the Mercer Global Pension Buyout Index, whilst there were some significant variations within individual countries. The Index tracks the cost of an insured annuity buyout relative to the corresponding pension accounting obligations in Ireland, the United States, Canada, the United Kingdom and The Netherlands. The Netherlands is notable as, unlike the other markets, the buyout index there has significantly decreased over 2014."
"An analysis was carried out of a Ten Year Euro Payer IRS versus Eurex Bund Future Euro Asset Swap comparing the cost in terms of Initial Margin requirements and Default Fund contributions clearing the products through two separate CCPs to clearing both products at Eurex Clearing. The analysis showed a 69% reduction in IM and Default Fund costs of clearing both products through Eurex Clearing with the benefits of Cross Margining compared to clearing the products through two separate CCPs:"
"The Dodd-Frank goal of a complete picture of swaps activity appears to be light years away. Chief regulator, the CFTC, is clamping down on industry compliance with newly established swaps reporting rules, just as market participants publicly complain to Congressional authorities that rules are too harsh."
"Cybersecurity intrusions are inevitable but firms can take steps so they can react quickly and efficiently, preventing damage, speakers at the Waters USA conference said this month"
""I view cybersecurity as one of the most serious financial stability concerns facing central banks and why we need to become more directly involved," Eric Rosengren told a conference in Cape Town, South Africa, according to his prepared remarks."
hree hackers recently strolled into the boardroom of a large European bank. Moving swiftly, they were soon "terrifying" the bank's top executives by showing them how easy it was to infiltrate most aspects of their lives, according to one of those present."
"The Commodity Futures Trading Commission (CFTC) should aim to complete outstanding rules on margin, governance and position limits by the end of this year, according to Sharon Bowen, one of the agency's commissioners."
"RBS risk veteran slams regulator’s focus on cyber threats as ignoring risks arising from banking activities"
J. Christopher Giancarlo disagrees. He disagrees with the suggestion that the Commodity Futures Trading Commission’s overhaul of the U.S. swaps market is too advanced for there to be meaningful revisions to the rules already passed. And he disagrees with the suggestion that as a new CFTC commissioner recently arrived in Washington after 12 years in the interdealer brokerage business, his strident calls over the past couple of months for the CFTC to revisit its own rules on swaps trading represent the final death rattle of a stricken industry.