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.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.