Go to top
Am I a US person? The known unknowns of who’s who for Dodd-Frank OTC
Archive
08 Oct
2013

One step forward or two steps back? FSB reports on implementation of global OTC reform

On 2 September 2013, the Financial Stability Board (FSB) published the sixth of its semi-annual comprehensive progress reports on over-the-counter (OTC) derivatives reform, as per the agenda of the 2009 G20 summit in Pittsburgh.  Although some of the reform proposals have stalled, particularly in light of the compromised agreement between the US and the EU Read More

03 Oct
2013

Regulatory roadblock bypassed: ROC endorses 3 pre-LOUs for mutual acceptance

The Regulatory Oversight Committee (ROC) for the Legal Entity Identifier (LEI) system has endorsed 3 Local Operating Units as being compliant with the ROC’s criteria for mutual acceptance. The 3 pre-LOUs endorsed are Germany’s WM Datenservice, France’s INSEE, and the CFTC’s CICI utility. With 13 pre-LOUs in existence, it’s likely we’ll be seeing this list Read More

03 Oct
2013

No Madoffs please: What does US government shutdown mean for enforcement and rulemaking?

On 1 October, the US government failed to reach an agreement on appropriate budget levels and a nationwide shutdown of federally funded entities ensued.  Clearly enforcement actions are going to take a hit.  But what effect will this have on the rulemaking process, especially given that we are in the middle of a delicate balancing Read More

27 Sep
2013

One footnote to rule them all: Close reading of the CFTC’s SEF rules reveal a controversial requirement

If you thought the debate on swaps reform in the United States was settled, you were wrong. A new row has emerged between the Commodities and Futures Trading Commission (CFTC), international regulators, and firms as the definition of who is a Swap Execution Facility (SEF) has been greatly expanded under a controversial footnote in the Read More

27 Sep
2013

Interim issues: Pre-LEIs complicating regulatory implementation

Despite ESMA quietly delaying the timeline for Trade Reporting under EMIR to February 2014 (90 days + 5 after the predicted approval of the first Trade Repository in November), firms are now being faced with important decisions in how to implement the LEI. Discussion are required to address what regulations are there that require an Read More

29 Aug
2013

€20 billion: The annual cost of OTC derivatives regulation

In its Macroeconomic impact assessment of OTC derivatives regulatory reforms, published on 26 August, the BIS have estimated the additional annual global cost of reforms as between €15 billion and €32 billion.  This huge cost, and the difference between the lower and upper brackets, makes clear the case for getting OTC reform implementation ‘right’ (see Read More

15 Aug
2013

Dodd-Frank vs. EMIR: The reality of substituted compliance

Millions of hours have already been spent aligning Dodd-Frank and EMIR implementation in the OTC space.  However, in July, regulators changed the game.  By declaring certain sections of Dodd-Frank and EMIR to be equivalent, they broke a worrying stalemate between the EU and US which threatened to leave US entities unable to clear through European Read More

14 Aug
2013

Spot the difference: Beware the lure of substituted compliance

On Tuesday, 13 August, the CFTC made a U-turn on a controversial issue: dual disclosure, reporting and record-keeping requirements for funds.  Having beaten legal challenges brought against plans to impose two sets of rules on funds, one set by the CFTC and one set by the SEC, the CFTC in the end backed down, saying Read More