Also posted at TabbForum.com By opting for a prescriptive rather than a rules-based approach in regulating the OTC derivatives market, the CFTC is set to write the wrong prescription for swap execution facilities (SEF). A major tenet of Dodd-Frank is to “promote pre-trade price transparency in the swaps market.” Through the rule-writing process, both the […]
Tag: CFTC
Trust but Verify (The Deal)
This piece provides an overview of the derivatives reform related regulatory rule writing process, but a focus on the numbers. How much will it cost, how much (or little) are regulators spending on technology and just how big is this market. “All the data will be reported to regulators to seek out systemically risky situations. […]
CFTC's Gensler May Not Have Had Enough Votes For Swap Trading Proposal (Dow Jones Newswire)
I can’t find a good link so here’s the story from Dow Jone’s Katy Burne. I think my best contribution is the last quote in the article. Enjoy. (c) 2010 Dow Jones & Company, Inc. NEW YORK (Dow Jones)–The Commodity Futures Trading Commission’s decision Thursday to delay a controversial vote on how over-the-counter derivatives should […]
Quick View: OTC swaps fight brews (Financial Times)
Despite the CFTC’s postponement of the SEF proposal release, debate still came on quickly as to their prescriptive approach surrounding trading model. These quotes are based on my commentary that we will publish early next week. “With liquidity so thin, under this new model the simple presence of a quote will alert the rest of […]
GOP impact on financial reform to be minimal, analyst says (The Deal)
My conversation with TheDeal.com: GOP impact on financial reform to be minimal, analyst says from TheDeal TV on Vimeo.
Commodity Futures Trading Commission: Send Money. And Power. (SeekingAlpha)
SeekingAlpha picked up my my recent quote in a Bloomberg article about proposed CCP ownership limits for dealers proposed by the CFTC. The author is right, I am flabbergasted. Kevin McPartland is justifiably flabbergasted: “What is an LCH.Clearnet going to do, that’s almost completely dealer-owned?” said Kevin McPartland, a senior analyst with Tabb Group in […]
CFTC Is Said to Propose That Banks Own 20% of Credit Swaps Clearinghouses (Bloomberg)
The Lynch Amendment is back. The CFTC is expected to release its first set of proposed rules related to OTC derivatives reform this Friday and it is expected that those rules will include limits on dealer ownership of clearinghouses (among other things). I get the logic, but from what we know of the expected proposal […]
Front Row Seat at the SEC, CFTC Hearing on SEFs
Also posted on TabbFORUM.com Wall Street (which includes yours truly) was in Washington on Wednesday (Aug 15) to discuss Swap Execution Facilities with the Securities and Exchange Commission and the Commodity Futures Trading Commission. I wasn’t the only one walking the block between Union Station, where the express train from New York arrives, to the […]
Financial Reform Becomes Law: The Devil's In The Details (Futures Magazine)
The law is passed but the rule writing processing is where the real nitty gritty details will be defined. My comments focus mostly on the execution space and definition of Swap Execution Facility: McPartland says the new rules will mean more transparency for traders. “We’ll see much more readily accessible electronic data for swaps trading. […]
The CFTC's Co-location Proposal: Not Ready for Prime Time
Also posted at TabbFORUM.com The CFTC should stick to regulating markets and not try to regulate data center providers. The recently released proposal by the CFTC does a good job of preventing providers of data center space from competing on their merits and pricing according to market demand. Don’t get me wrong, I appreciate the spirit of the […]