Derivatives Market Reform - Where Are We Headed?
What's going on in the derivatives market these days? There's lots of talk about regulation -- who, how, when, and what.
My partners in our derivatives practice have written a summary of the three proposals for regulatory reform of the OTC derivatives market that are currently under consideration by Congress. Key themes of these proposals include mandatory clearing, exchange trading, capital requirements, margin requirements, position limits, and disclosure and reporting obligations. The Commodities and Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) will be required to establish the specific rules.
If you're a swap dealer or "major swap participant" (as defined in the proposals), you'll want to watch these developments closely.
