(Reuters) – President Barack Obama on Wednesday signed a sweeping overhaul of the financial regulatory system. Following is a brief look at the bill’s main provisions:SWAPS PUSH-OUT: Wall Street firms that dominate the $615 trillion over-the-counter derivatives market will have to spin off dealing operations in some swaps, but can keep many swaps in-house, including derivatives to hedge their own risk.Much of OTC derivatives trading will be redirected through more accountable channels such as exchanges and clearinghouses.
Posts Tagged ‘Derivatives Market’
Highlights of the financial overhaul
July 22nd, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Bankruptcies, Barack Obama, Biggest Banks, Collapse, Consumer Watchdog, Derivatives Market, Derivatives Trading, Financial Forest, Financial Regulatory System, Government Regulation, Hedge Funds, High Risk, Lehman Brothers, Loophole, Orderly Liquidation, Otc Derivatives, Private Equity, Proprietary Trading, Reuters, Sharp Teeth 
Comments OffSigns emerge that Europe, U.S. are diverging on derivatives reform
January 7th, 2010 Before You Invest Policymakers in Europe and the U.S. will kick off the year by tackling the overhaul of financial regulation, including rules related to the derivatives market. But, indications are coming to light that the U.S. and Europe are diverging in their approach to overhauling derivatives regulation. “Should there be a disparity between levels of capital charges, market participants will simply go to the business center with lower capital charges,” said David Clark, chairman of the Wholesale Market Brokers Association.
Regulating derivatives could do more harm than good
October 23rd, 2009 Before You Invest Rep. Eric Cantor, R-Va., writes that lawmakers are focusing on an simple target — the derivatives market — rather than identifying and tackling the root causes of the global financial crisis. Cantor, the Republican whip, warns that new regulations being considered by Congress could do irreparable hurt to businesses and consumers. “Rather than the tool for yucky financial manipulation it is described to be, the derivatives market plays a very vital role in solidifying the competitiveness of American businesses,” Cantor writes.more at http://www.investors.com/NewsAndAnalysis/Article.aspx?id=509198
CME downplays reliance on OTC for growth
October 1st, 2009 Before You Invest (Reuters) – CME Group Inc.’s overall growth is “absolutely not” dependent on its over-the-counter clearing venture, the head of the world’s largest derivatives exchange operator said on Thursday.Chicago-based CME has for nearly a year plotted to clear OTC-traded credit default swaps.OTC clearing is a “very compelling and significant growth opportunity for us, but I reckon it’s additive to the growth that I reckon we can achieve through these other things,” CEO Craig Donohue told investors.He said there is a “global expanding pie in derivatives,” adding that markets in North America and Europe are honestly mature while those in emerging markets are relatively immature.Kim Taylor, a CME managing director, added at the investor meeting that the company expects its European clearinghouse for CDS and other products to get British Financial Services Authority approval by about year’s end.
Posted in Finance Fraud Tags: Central Counterparty, Clearinghouses, Craig Donohue, Credit Crisis, Credit Default Swaps, Derivatives Market, Emerging Markets, European Venture, Exchange Operator, Futures And Options, Global Futures, Growth Opportunity, Intercontinentalexchange Inc, Kim Taylor, Launch, Nasdaq, Options Market, Otc, Reuters, Trillion No Comments »Geithner presses Congress for rules on derivatives market
July 10th, 2009 Before You Invest Treasury Secretary Timothy Geithner is seeking laws for the $592 trillion derivatives market. Geithner is set to testify before a joint hearing of the House Agriculture and Financial Services committees to call for requiring all “standardized” contracts to be traded on exchanges or other regulated platforms.
Posted in Finance Fraud Tags: Agriculture, Amp, Committees, Congress, Contracts, Derivatives Market, Disclosure Rules, Financial Services, Pid, Platforms, Sid, Timothy Geithner, Treasury Secretary, Trillion No Comments »Treasury adopts banks’ recommendations in derivatives regulation
May 26th, 2009 Before You Invest The Treasury’s proposal to regulate the over-the-counter derivatives market includes suggestions from Goldman Sachs, Credit Suisse, JPMorgan Chase and Barclays. In February, the banks told the Treasury that the Federal Reserve should expand regulatory practices to hedge funds and corporations, which do not face minimum capital and margin levels. more athttp://www.bloomberg.com/apps/news?pid=20601109&sid=aMMeY6OodQW4&refer=exclusive
Posted in Finance Fraud Tags: Amp, Barclays, Chase Banks, Corporations, Credit Suisse, Derivatives Market, Federal Reserve, Goldman Sachs, Jpmorgan Chase, Pid, Proposal, Regulatory Practices, Sid, Treasury No Comments »Energy market gets caught up in derivatives crackdown
May 18th, 2009 Before You Invest Regulators are pushing for over-the-counter derivatives to trade through a clearinghouse so failed trades would not cause a domino effect. While commodities make up only 2% of the massive derivatives market, participants in the energy market said the crackdown could make trading much more complex.
