The BDA is concerned that giving out too much information may cause market participants to ease up on trading and decrease liquidity.
According to Reuters, it seems unlikely that the Federal Reserve will be detailing their plans on commodity regulation until after next month’s Senate hearing over the rigging of the aluminum market. A final decision on…
The Volcker rule will be revised to clearly define what will be considered legitimate hedging and what will be considered proprietary trading.
According to Business Week, the Federal Reserve liquidity coverage ratio proposal was approved earlier today. The rule, which affects banks with over a quarter of a trillion dollars in assets the most, will take the approved international rules a few steps further.
According to Bloomberg.com, many of the United States’ largest banks aren’t happy with a recently proposed rule to increase the minimum capital a bank needs to hold against potential losses. Banks are saying the new…
Experts are saying that the CFTC’s new rules will affect fund performance, as the higher cost of doing business will detract from returns. Many also worry that new disclosure rules will lead to confidentiality issues offshore.
The new rule is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law in 2010 as a means to create more transparency in the financial services industry in response to the 2008 financial crises.
O’Malia feels the use of data will allow the CFTC to understand problems that can occur within the market, citing the Flash Crash of 2010, where the market was found to be vulnerable to automated trading errors after the event.
Gensler’s apparently unyielding stance on deadlines, despite continuous complaints and requests for delays is impressive considering not only that he will be stepping down as Chairman within the month, but that he is going forward with these deadlines in the midst of a government shutdown.
As of right now, the CFTC plans to cut the time margin calls must be reported from three days to just one day. The CFTC would also require that all customer funds be fully margined at all times.