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Extent of Clampdown on Overseas Swaps Gets Vote by SEC 

June 24, 2014
Dave Michaels and Silla Brush, Bloomberg

The Securities and Exchange Commission plans to vote tomorrow on a plan that will define how far its regulations reach into a segment of the $710 trillion global swaps market.

The SEC’s rule will outline how new requirements apply to derivatives traded by foreign divisions of U.S. banks including JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) The new rule comes as Wall Street takes steps to restructure trades overseas to avoid Dodd-Frank Act regulations intended to increase competition and price transparency.

U.S. regulators have faced a backlash from European and Asian authorities for overreaching in their desire to apply Dodd-Frank rules overseas. Meanwhile, Wall Street lobbying organizations have sued the Commodity Futures Trading Commission, which is the primary U.S. regulator of derivatives, to limit the international scope of the agency’s power.

Read More: Bloomberg

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