Tue, May 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

CFTC adopts new rules on cleared swaps collateral segregation

Friday, March 09, 2012

Bailey McCann, Opalesque New York - The Commodity Futures Trading Commission (CFTC) has adopted a new slate of final rules concerning collateral segregation for cleared swaps. Futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) will now be required to segregate collateral posted by customers on cleared swaps. The rule changes are part of the regulator's efforts to comply with the requirements set forth in the Dodd-Frank Act.

The new rules will go into effect on April 9, 2012 but market participants will have until November 8, 2012 to be fully compliant.

Under the terms of the new rules, FCMs and DCOs must segregate cleared swap customers collateral on their books and records and cannot comingle customer collateral with their own funds. Customer collateral may only be comingled with other customer funds. The new rules also restrict derivatives clearing organizations from using non-defaulting customer collateral to cover the obligations of defaulting customers.

The changes are designed to reduce "fellow-customer risk," but will have an impact on the cost of entering into cleared swap transactions. Futures commission merchants and derivatives clearing organizations will likely bear the biggest brunt in terms of cost to implement these new rules as they require significant operational changes for both groups.

According to a ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Time to invest in robotics? (part 1)[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The London-based, Swiss-born manager of the RoboCap UCITS Fund, talks to Opalesque about investing

  2. Investing - Hedge funds have been selling big winners this year, Hedge funds are betting $1 billion that Snapchat shares are going to drop, Here are the biggest bets made by top hedge funds in the first quarter[more]

    Hedge funds have been selling big winners this year From CNBC.com: Hedge fund managers' most popular stock to start the year has been a familiar name that is falling short in terms of performance, while the least popular companies all have been crushing the market. Procter & Gamble

  3. Investing - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  4. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  5. Opalesque Roundtable: Rise of high-frequency trading in Europe a challenge for traditional asset managers[more]

    Komfie Manalo, Opalesque Asia: The rise of high-frequency trading in Europe, dominating over 80% of the market, has become a challenge for traditional asset managers especially when it comes to risk management, said Philippe Malaise, chairman of advisory firm