Regulation

US financial reform legislation transforms the swap market from an unregulated to a highly regulated market. Davis Polk & Wardwell estimates that swap dealers will  have to manage over 1900 operational tasks to comply with new rules issued by federal regulators.

Natalie Westerbarkey, Director, Client Executive at Citigroup Securities and Fund Services discusses how through understanding the new regulatory landscape and intersection (or interaction) of rules, asset managers can better assess the impact these new rules will have on their costs, risk management and operations

BISS Research’s Gary Wright explains why the fragmentation of  the CCP landscape in Europe, which is further complicated by the push for OTC derivatives onto exchanges, will cost the market more and introduce more operational burdens all while not reducing the risks expected.

The OTC derivatives reform is opening up the industry to new operational risks, primarily due to the sheer magnitude of the system and process changes needed to be accomplished in a relatively compressed timeframe. Rule Financial’s Ciaran Henry explores the operational challenges associated with the Dodd-Frank compliance marathon now underway and offers insight into the complexities of processing trades in a new post-trade workflow including the challenges in trade reporting and data management.

Regulatory reform still faces delays and disagreements between the US and UK, which could have dire consequences on the derivatives industry if harmonisation is not achieved and all potential implications are not given appropriate attention. Roger Barton of Financial Reform Consultancy offers his personal predictions and questions to be answered regarding EMIR, MiFID II, systemic risk and global regulatory harmonisation.

David B. Weiss, an independent consultant and research analyst, discusses the current state of SEFs and what the future holds for these trade execution facilities

-- Proposed new regulation for derivatives market is expected to be formally release mid-month

Earlier this week, at a Senate Agriculture Committee hearing, CFTC head Gary Gensler, announced his proposed plan for changing the way the derivatives market and its participants are to be regulated. The details of the final regulation plan will be formally announced later this month.

- CFTC Position Limits Monitoring, Swap Data Repository Reporting and OTC Clearing Workflows encompassed in package offering

OpenLink Financial, LLC (OpenLink), a leading provider of cross-asset trading, risk management and operations processing software solutions, announced today initiatives focused on accelerating compliance with Dodd-Frank regulatory milestones scheduled for 2012.