Assessing the Regulatory, Economic, and Market Implications of the Dodd-Frank Derivatives Title

Author: United States House of Representatives


ISBN: 1704104076


Page: 380

View: 273

Assessing the regulatory, economic, and market implications of the Dodd-Frank derivatives title: hearing before the Committee on Financial Services, U.S. House of Representatives, One Hundred Twelfth Congress, first session, February 15, 2011.
Derivatives Market Reform

Author: Carl Wilkerson


ISBN: OCLC:1308929030


Page: 72

View: 960

The 2008 turmoil in the financial markets provided the primary impetus for significant financial reform of U. S. financial service institutions. The profound economic disruption had multiple causal factors, including, in part, the widespread use of privately negotiated over-the-counter derivatives instruments. Transactions outside the structure of exchanges or centralized clearing facilities did not universally face collateralization, margin and transparency typically associated with exchange traded derivatives. As a consequence, a significant volume of derivatives transactions lacked the limiting brakes of traditional collateral and were largely opaque to financial service regulators. These, and other factors, magnified structural and regulatory gaps that accelerated economic and financial challenges in U. S. and global markets.This paper discusses rule initiatives implementing Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or DFA) involving derivatives market reform that affect life insurers' asset and liability risk management through derivatives transactions, and that impact selected insurance products. The discussion will summarize the legislative purposes of Title VII of the DFA and evaluate rulemakings implementing the broad scope of the legislation, including: 1. “Swap” and “Security-Based Swap” Definitions; 2. The Stable Value Contract Study; 3. The Definition of Major Swap Participant and Major Security-Based Swap Participant; 4. Collateral and Margin for Uncleared Swaps; 5. Segregation and Protection of Customer Collateral; 6. Swap Documentation Challenges; and, 7. Mandatory Clearing Requirements.
Freedom to Harm

Author: Thomas O. McGarity

Publisher: Yale University Press

ISBN: 9780300141245

Category: Political Science

Page: 406

View: 668

DIV How much economic freedom is a good thing? This comprehensive look at America’s succession of “laissez faire revivals” shows how anti-regulatory business crusades harm public safety and economic performance. /div
Understanding Systemic Risk in Global Financial Markets

Author: Aron Gottesman

Publisher: John Wiley & Sons

ISBN: 9781119348542

Category: Business & Economics

Page: 272

View: 679

An accessible and detailed overview of the risks posed by financial institutions Understanding Systemic Risk in Global Financial Markets offers an accessible yet detailed overview of the risks to financial stability posed by financial institutions designated as systemically important. The types of firms covered are primarily systemically important banks, non-banks, and financial market utilities such as central counterparties. Written by Aron Gottesman and Michael Leibrock, experts on the topic of systemic risk, this vital resource puts the spotlight on coherency, practitioner relevance, conceptual explanations, and practical exposition. Step by step, the authors explore the specific regulations enacted before and after the credit crisis of 2007-2009 to promote financial stability. The text also examines the criteria used by financial regulators to designate firms as systemically important. The quantitative and qualitative methods to measure the ongoing risks posed by systemically important financial institutions are surveyed. A review of the regulations that identify systemically important financial institutions The tools to use to detect early warning indications of default A review of historical systemic events their common causes Techniques to measure interconnectedness Approaches for ranking the order the institutions which pose the greatest degree of default risk to the industry Understanding Systemic Risk in Global Financial Markets offers a must-have guide to the fundamentals of systemic risk and the key critical policies that work to reduce systemic risk and promoting financial stability.