Bumpy Flight ahead.. Make sure your tray is in the upright position. Reuters reports that the U.S. swaps regulator is set to
finalize this week a critical reform that will trigger banks and traders having
to comply with costly new derivatives rules.
The Commodity Futures Trading Commission will vote on Tuesday on a
definition of a "swap," which will start a countdown on compliance
dates for big swaps players to start registering with regulators and reporting
their trades.
Market watchers say this is a big step in regulators'
efforts to bring the $650 trillion over-the-counter swaps market out of the
shadows. The CFTC is expected to vote
unanimously to finalize a swap definition that closely follows what is laid out
in Dodd-Frank. Gabe Rosenberg, an attorney at Davis Polk, called it a
"critical moment for the industry."
The toughest requirements will fall on those institutions
labeled swap dealers, which are mostly banks with more than $8 billion in swap
trades annually…..
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