We should get much more information about the Senate’s view on OTC derivative reform on Friday when the first amendment to the bill is expected. In the meantime: While most derivative pros did not expect the broader definition in Dodd’s revised bill, they believe the Reed-Gregg amendment will focus heavily on exemptions. “The way it […]
Tag: OTC Derivatives
‘Stricter’ OTC Derivatives Bill Expected, Morgan Stanley Says (Bloomberg)
Turned out the Dodd bill published on Tuesday was a bit of a non-event for OTC derivatives reform. Looks like the forthcoming amdendment from Sens. Reed and Gregg will lay out the real details for OTC derivatives. Even still, some interesting differences do exist between the wording in the House and Senate bills. My comments […]
OTC Derivative Reform – Coming up to the Majors?
On March 14, 2010 Senator Dodd and the Senate Banking Committee released their latest Financial Reform Bill. Broadly speaking, the few hundred pages of this bill dedicated to reforming the OTC derivatives market showed few major changes from either the previous Senate bill release in November 2009 or the House Bill passed in December 2009. This does not come as much of a surprise as the major tenets of OTC derivative reform appear to be decided – standardized products will be traded through a registered platform and centrally cleared, dealers will register with the SEC and/or CFTC based on the products they trade and all OTC derivatives trades not cleared will be reported to a trade repository and subject to margin requirements. The devil however, continues to be in the details.
Bloomberg – Goldman Sachs Demands Derivatives Collateral It Won’t Dish Out
Between AIG and the push for central clearing of OTC derivatives, collaterals has become a pretty hot topic lately. Yet again the focus is on Goldman, with claims that while they are demanding more collateral from trading counterparties they are unwilling to post the same levels of collateral on their own trades. And as with […]
OTC Derivative Reform – What to expect from the Senate Bill
The Senate via Sen. Dodd is expected to make public its latest financial reform bill. Although overshadowed in recent weeks but talk of consumer protection an “to big to fail”, the bill will include details of OTC derivative reform. In this video I discuss what we expect, and hope, to see in the Senate’s version […]
Derivatives Week – Regulators Push For OTC Trading Tape
This story came out of a conference I participated in yesterday put on by Markit. Creating a “tape” for OTC derivatives was a big topic of conversation, especially when it came time for CFTC Chairman Gensler to take questions. Excerpts from the story: “They are looking at this like an exchange-traded market focused on the […]
FT Mandate – Desperately seeking OTC enlightenment
This article provides a good overview of OTC derivative market regulation and the views of various industryparticipants. I like how I’m quoted here – gives good insight into my views on the subject: …however, most in the industry feel more regulation is pretty much a given. “Regulation of the OTC derivatives market is inevitable – […]
Bloomberg – Fed Fails to Get Swap Users to Accept Clearinghouse Target
The buy side doesn’t want to commit to clearing targets, nor should they have to. This is about reducing systemic risk, and arguably that comes from the interconnectedness of the dealers. My comments in the article: Now, some firms may be having second thoughts, said Kevin McPartland, a senior analyst at Tabb Group in New […]
Securities Industry News – Single-Dealer Portals Offer Live Prices to Debt Buyers
Trade directly with your broker or look to a system that consolidates multiple quotes? There are benefits to each approach, but as things get more electronic in the OTC markets (with or without new derivatives regulations) this question will be front and center for many. My comments: “It is important to have an individual brand and […]
OTC Derivative Reform Brings Huge Opportunities
OTC derivatives reform has become synonymous with shrinking dealer profits. Automation will shrink spreads, clearing will raise costs and central clearing will erode this control of the market. But there is another side to the reform story, one of wide-eyed entrepreneurs who see huge opportunities in the expected market revamp. In addition to the more […]