When the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law last month, we ran a poll question on our website asking whether it: a) ends “too big to fail,” b) doesn’t end “too big to fail,” or c) is a full employment act for lawyers. Most of those who responded chose option c, and from the looks of things at the Futures Industry Association‘s financial reform forum in Chicago yesterday, they were right. The forum was packed with lawyers who will be very busy over the next year as new rules stemming from the legislation are put in place. Their discussion on the new rules was complicated and mind-numbing, and it seemed like the only certainty at this point is that there are many UNcertainties. (more…)
Posts Tagged ‘Financial Regulatory Reform’
New regulations: Clear as mud
Wednesday, August 18th, 2010And so it begins…
Thursday, July 22nd, 2010Everything we’ve been hearing from analysts and industry vets indicates that yesterday’s signing into law of the Wall Street Reform and Consumer Protection Act is only the beginning of the path to actual financial reform. Now a long, complicated process of rulemaking begins for the regulators, and that could take up to a year. Just how complicated the process will be was made clear yesterday when the Commodity Futures Trading Commission (CFTC) released a rulemaking list for OTC derivatives, based upon provisions in the Act, which contained a whopping 30 categories. (more…)
Financial reform is law, but what happens now?
Wednesday, July 21st, 2010President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law today, but this is far from the end of the road in financial reform. In fact, it’s just the beginning of a longer process, and the devil is definitely in the details. The law gives most of the power to the regulatory agencies to actually make the rules, a process that could take up to a year, analysts say. And a history of lack of cooperation and regulatory overlap in some financial products from the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) only complicates matters. Many experts still aren’t sure of the exact ramifications of the law. (more…)
Financial reform: Almost there
Thursday, July 1st, 2010After the House and Senate worked out a compromise on the financial reform bill last week and that compromise passed the House yesterday, only the Senate remains as a hurdle to the bill’s passage, and the bill could become law within the next few weeks. The legislation will mean many changes for traders, including requirements for clearing of OTC derivatives, with the new structure meaning changes in pricing and liquidity. And new restrictions on proprietary trading could cause larger traders to shift from banks to hedge funds, private equity firms or foreign firms.
OTC derivatives: Growth and change
Tuesday, June 22nd, 2010The over the counter (OTC) derivatives market has come under pressure in the aftermath of the economic meltdown and subsequent increased regulatory challenges. However, according to a new study by Aite Group, OTC asset classes are experiencing growth again, with growth in the credit default swaps (CDS) market outpacing other asset classes. According to the report, the drivers of this growth included a steady need for derivatives during the credit crisis and the development of central counterparties by exchanges to clear CDS. (more…)
Hold the onions
Monday, April 19th, 2010Sen. Blanche Lincoln’s new bill on derivatives legislation raises some eye-watering questions on how far banning trading on certain commodities could go. The Wall Street Transparency and Accountability Act of 2010, released by the Senate last week, would ban trading on onion futures and motion picture receipts. According to the Financial Times, onion futures haven’t been traded since 1958 upon protest by farmers after prices collapsed. The FT story says that some argue that the ban on exchange trading for onions (which is supported by the National Onion Association) actually contributes to price volatility in the onion markets. (more…)
A new ball game for regs
Thursday, June 18th, 2009In what is being described as the most sweeping regulatory overhaul since the 1930s, President Obama on Wednesday introduced his blue print for a new regulatory environment in a Treasury document titled: Financial Regulatory Reform, A new Foundation: Rebuilding Financial Supervision and Regulation.
The size and scope of the recommendations ensured that most of the initial responses by industry insiders were positive affirmations of the general principles. After all there will be plenty of time to tear it apart and given its enormous scope and the realities of the sausage making process of legislation, the likelihood of the recommendations becoming law anytime soon is pretty slim.
