CFTC published whitepaper on swaps regulation, which the CFTC Chairman J. Christopher Giancarlo co-authored with CFTC Chief Economist Bruce Tuckman. Mr. Giancarlo unveiled the white paper at the annual meeting of International Swaps and Derivatives Association (ISDA). The whitepaper analyzes the range of academic research, market activity, and regulatory experience with the current implementation of swaps reform by CFTC.
The whitepaper comprehensively examines the areas of swaps' central counterparties (CCPs), swap reporting rules, swap execution rules, swap dealer capital, and end-user exception. It explores and considers a range of improvements to the current reform implementation that is pro-reform, aligned to Congressional intent, and better balances systemic risk mitigation with healthy swaps market activity in support of broad-based economic growth.
The authors seek to optimize the implementation of Dodd-Frank Act by CFTC, with the aim to strike a balance between systemic safety and stability and market vibrancy and economic growth. They explain that financial regulators have a duty to apply the policy prescriptions in ways that enhance markets and their underlying vibrancy, diversity, and resiliency. That duty also includes the responsibility to review past policy applications continuously to confirm that they remain improved for the purposes intended. It further includes anticipating changing market dynamics and the impact of technological innovation.
Keywords: Americas, US, Banking, Securities, Swaps Reform, Systemic Risk, CCPs, Reporting, CFTC Roadmap, CFTC
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Previous ArticleFSI Paper on Identification and Measurement of Non-Performing Assets
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).
ECB published results of the financial stability review in May 2020. Among other issues, the financial stability review assesses operations of the financial system so far during the COVID-19 pandemic.
Financial policymakers and international standard-setters met virtually with private-sector executives to discuss international policy responses to COVID-19 pandemic.
ESMA published a letter responding to IASB on the exposure draft on the phase 2 of the interest rate benchmark reform.
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA published thematic note presenting a preliminary assessment of the impact of COVID-19 outbreak on the banking sector in EU.