Derivatives Market Faces New Capital Rules
By BEN PROTESS
NYT
The $600 trillion derivatives market, long known for its freewheeling ways, is slowly being tamed.
The Commodity Futures Trading Commission proposed rules on Wednesday that would force hedge funds and other firms that trade the opaque products to bolster their capital cushion, the latest effort by regulators to curb risky behavior that fed the financial crisis.
The commission also issued a long-awaited clarification about what types of derivatives contracts will face new regulations.
The new capital rules are largely aimed at some 200 swap dealers — brokerage firms, large energy trading shops and Wall Street affiliates that arrange the deals. The commission’s plan also would apply to hedge funds and other companies that have huge positions in swaps, the derivative contracts tied to the value of commodities, interest rates or mortgage securities.
(More here.)
NYT
The $600 trillion derivatives market, long known for its freewheeling ways, is slowly being tamed.
The Commodity Futures Trading Commission proposed rules on Wednesday that would force hedge funds and other firms that trade the opaque products to bolster their capital cushion, the latest effort by regulators to curb risky behavior that fed the financial crisis.
The commission also issued a long-awaited clarification about what types of derivatives contracts will face new regulations.
The new capital rules are largely aimed at some 200 swap dealers — brokerage firms, large energy trading shops and Wall Street affiliates that arrange the deals. The commission’s plan also would apply to hedge funds and other companies that have huge positions in swaps, the derivative contracts tied to the value of commodities, interest rates or mortgage securities.
(More here.)
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1 Comments:
go read "The Sellout" by Charles Gasparini.
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