The word is out on the Obama administration’s plan for derivative regulation. CFTC Chairman Gary Gensler outlined the plan before the Senate Committee on Agriculture, Nutrition, and Forestry today. Derivative dealers can look forward to new rules surrounding, “capital requirements, initial margining requirements, business conduct rules and reporting and record keeping requirements.” In his testimony Gensler stated that the new rules aim to achieve four main objectives:
• Lower systemic risks;
• Promote the transparency and efficiency of markets;
• Promote market integrity by preventing fraud, manipulation, and other market abuses, and by setting position limits;
• Protect the public from improper marketing practices.
Regarding the highly scrutinized world of customized derivatives, Gensler set out four criteria for determining whether or not a derivative contract qualifies as customized and therefore avoids the requirement of trading through an exchange:
•The volume of transactions in the contract;
•The similarity of the terms in the contract to terms in standardized contracts;
•Whether any differences in terms from a standardized contract are of economic significance;
•The extent to which any of the terms in the contract, including price, are disseminated to third parties
And so it begins.
Any of that is new? Really? Really?
Gregg – please step your game up. I can only continue to support you for so long.
Gregopotamus, please tell us, what exactly, this post has to do with DB’s stated mission? Here it is for you:
DealBreaker is an online business tabloid and Wall Street gossip site that covers the personalities and culture that shape the financial industry, offering original commentary, news and entertainment.
It sure has hell isn’t entertaining, you didn’t offer any insight, this is hardly news, your commentary fucking sucks.
Additional oversight isn’t automatically a bad thing.
/covers head and runs from angry mob
Question:
Who do DB readers/commenters have more disdain for…Greg or WallStreet2-crotchthrob Shia Lebeouf?
Greg seems to be the odds on favorite thus far.
LebWuff is still higher on my list because I haven’t yet seen Greg’s white, preppy mug.
@5 – I’d kind of like to tie their tails together, throw them over a clothes line and see what happens.
TLDR
Some of you will obviously disagree with me, but TGFD thinks that the derivatives markets sure-as-hell do need more scrutiny and regulation.
It’s about time somebody’s ass besides the secretary’s gets a good banging.
The Guy from Delaware
How many of you people are unemployed?
I might be by the end of next week.
GM
Greg, As your 15 minutes winds down I’d just like to say that I’ve enjoyed taking a five iron to your head over the past couple weeks. Poor thing. I’m sure they don’t talk to you like that back at the Crunch gym you work at. I bet you had a good time in the big city though! Shhhhhhh…… Greg don’t cry. It’s almost over.
Reading an article regarding this topic in Gas Daily today. CHK is bitching about potentially posting additional margin for their hedges*…if there is any company I want to post additional $, it is them. Would hate for them to have to sell art, wine, or maps to fund those calls.
*how did those knockouts work for ya?
-Nominate me
I told’ya: don’t mess with the USDA!
you know what annoys me, though? what if greg doesn’t read these comments. what if bess is trying to add a more “straight news” angle to DB, and this is how it’s going to be?
bess is smarter than this. she saw writing samples. she hired him for one of two reasons:
1) DB is getting dumbed down and will now half-permasuck with greg “anus” michael’s presence
2) GM is a super hot, well-hung stud and bess is using him until she’s bored, deleting his DB admin login and phone number from her blackberry