Does the current Dodd-Frank Act ban speculation in OTC swaps?
What is a swap under Dodd-Frank?
The broad definition of swap set forth in Title VII of the Dodd-Frank Act includes any agreement, contract or transaction (the “Subject Agreement”) that provides for payment “dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial,
What swaps does the CFTC regulate?
It includes, for example, interest rate swaps, commodity swaps, currency swaps, equity swaps and credit default swaps.
Does the CFTC regulate OTC?
The CFMA explicitly prohibited the SEC and CFTC from regulating the over-the-counter (OTC) swaps markets, but provided the SEC with antifraud authority over “security-based swap agreements,” such as credit default swaps.
What is the Dodd-Frank Act 2020?
The Dodd-Frank Act put restrictions on the financial industry and created programs to stop mortgage companies and lenders from taking advantage of consumers.
Are swaps regulated?
“Swaps” are generally regulated by the Commodity Futures Trading Commission (the “CFTC”) under the Commodity Exchange Act (the “CEA”), and “security-based swaps” are regulated by the Securities and Exchange Commission (the “SEC” and, together with the CFTC, the “Commissions”) under the Securities Exchange Act of 1934,
Which swaps does the SEC regulate?
The SEC regulates Security-Based Swaps (SBS) and Security-Based Swap Dealers (SBSD). The CFTC regulates Swaps and Swap Dealers.
Does CFTC have jurisdiction over commodity swaps?
Under the comprehensive framework for regulating swaps and security-based swaps established in Title VII, the CFTC is given regulatory authority over swaps, the SEC is given regulatory authority over security-based swaps, and the Commissions jointly are to prescribe such regulations regarding mixed swaps as may be
Which federal statute was passed by the US Congress to regulate the swaps markets?
The Swaps Regulatory Improvement Act (H.R. 992) is a bill that would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act. The Swaps Regulatory Improvement Act would improve the ability of banks to use swaps as a tool for hedging risk.
Are OTC swaps traded on a swap execution facility?
Swap Execution Facilities, or SEFs, were given life by the Dodd-Frank Financial Reform Bill, which requires over-the-counter (OTC) swaps to be cleared and traded on this new type of regulated platform.
What are the five areas included in the Dodd-Frank Act?
What are the five areas included in the Dodd-Frank Act of 2010? Consumer protection, resolution authority, systemic risk regulation, Volcker rule, and derivatives.
Which entities are covered by the Dodd-Frank Act?
The Dodd-Frank Wall Street Reform and Consumer Protection Act targeted the sectors of the financial system that were believed to have caused the 2007–2008 financial crisis, including banks, mortgage lenders, and credit rating agencies.
What are the key points of the Dodd-Frank Act?
The Dodd-Frank Act enabled the Securities and Exchange Commission (SEC) to regulate derivative trading, or contracts between two parties who agree on a financial asset or a set of assets. These trades can involve the exchange of bonds, commodities, currencies, interest rates, market indexes or stocks.
Are OTC derivatives regulated?
An over-the-counter (OTC) derivative is a financial contract that is arranged between two counterparties but with minimal intermediation or regulation. OTC derivatives do not have standardized terms and they are not listed on an asset exchange.
Does NFA has regulatory authority over security-based swaps?
NFA provides regulatory services to designated contract markets (DCM) and swap execution facilities (SEF)—each of which has self-regulatory responsibilities to monitor trading on its platform.
Which financial products are regulated under Title 7 of the Dodd-Frank Act?
Title VII of the Dodd-Frank Act contains the US framework regulating OTC derivatives (swaps), including its G20 commitments for the reporting, clearing and exchange trading, as well as margin requirements for non-cleared swaps.
How will Title VII of the Dodd-Frank Act Impact swap dealers swap markets and financial institutions?
Background — The Dodd-Frank Act
Title VII seeks to reduce systemic risk, increase transparency and improve efficiency in the swaps market by requiring centralized clearing and exchange trading of swaps as well as real-time and regulatory reporting of swap transactions.
Does the CFTC regulate credit default swaps?
Who regulates credit default swaps (CDS)? The SEC regulates CDS on single names, loans and narrow-based security indexes. The CFTC regulates CDS based on broad- based security indexes. The Commissions are issuing detailed and objective rules to distinguish broad from narrow-based security indexes for purposes of CDS.
Who is exempt from Dodd-Frank?
The Dodd-Frank Act exempts from registration “foreign private advisers,” or an investment adviser that (i) has no place of business in the U.S., (ii) has, in total, fewer than 15 clients in the U.S. and investors in the U.S. in private funds advised by the adviser, (iii) has aggregate assets under management
Why did Dodd-Frank Act amend the investment advisers Act?
The Dodd-Frank Act also amended the Advisers Act to provide for an exemption from registration for foreign advisers that do not have a place of business in the United States, and have: Less than $25 million in aggregate assets under management from U.S. clients and private fund investors.
What is a qualifying private fund?
(5) Qualifying private fund means any private fund that is not registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8) and has not elected to be treated as a business development company pursuant to section 54 of that Act (15 U.S.C. 80a-53).
What is an exempt reporting adviser?
Exempt Reporting Advisers (“ERAs”) are investment advisers that are not required to register as an adviser with the U.S. Securities Exchange Commission (“SEC”) or state regulators, but must still pay fees and report public information via the IARD/FINRA system.
Who must file as an exempt reporting adviser?
The Venture Capital Fund Adviser Exemption is generally available to investment advisers that solely advise venture capital funds. The Private Fund Adviser Exemption is generally available to advisers that only manage private funds and have less than $150 million in assets under management.
Is an era an RIA?
Federal Registration Process
An ERA is required to file with the SEC and does so by completing and filing Form ADV—the same registration document submitted by registered investment advisers (RIAs). However, instead of the entire form, ERAs complete only certain items in Part 1A, along with corresponding schedules.