New Margin Requirements for Uncleared Swaps
Download PDF Craig Stein & Paul N. Watterson, Jr.* One of the fundamental changes that the Dodd-Frank Wall Street Reform […]
Energy, Featured, Home, Securities, U.S. Business Law, Volume 5
Swaps
Energy, Featured, Home, U.S. Business Law, Volume 5
The Status of Environmental Commodities Under the Commodity Exchange Act
This article examines the role of the Commodity Futures Trading Commission (“CFTC”) in regulating transactions in environmental commodities, such as renewable energy certificates (“RECs”), emissions allowances, carbon offsets and carbon credits.
Derivatives Regulation, Featured, Home, Securities, U.S. Business Law, Volume 4
The CFTC’s Cross-Border Guidance for Swaps and Substituted Compliance Regime
James Schwartz: The regulation of the swaps market, in which transactions between counterparties in wide-ranging jurisdictions have long been routine, requires international coordination and cooperation. If this were lacking, the consequences could include regulatory arbitrage, outsized compliance costs for, or incomplete compliance by, market participants, the fracturing of liquidity among different jurisdictions, and perhaps even political tensions.
Clearinghouse Hope or Hype? Why Mandatory Clearing May Fail to Contain Systemic Risk
Sean J. Griffith: Clearinghouses may not be the last and best solution to the problem of systemic risk and that further regulatory experimentation may be desirable. Policy-makers should strive instead for a structure that fosters diversity and experimentation.
Derivatives Regulation, Featured, Home, U.S. Business Law, Volume 3
Margin Costs of OTC Swap Clearing Rules
Watterson, Suh & Stein: Clearing requirements affect margin requirements, a key mechanism used to mitigate counterparty risk. New clearing rules may substantially costs for users of cleared derivatives because of the higher margin delivery requirements applicable to such transactions.