WASHINGTON: U.S. markets regulators on Friday unveiled an agreement on how much capital and margin firms must hold when trading swaps based on securities, finalizing a key piece of the 2010 Dodd-Frank law introduced following the 2007-09 financial crisis.
"Moving these rules is a positive development in getting a big piece of Dodd Frank Title VII over the finish line, completing the mandate that Congress gave us," Republican Commissioner Hester Peirce, who led the SEC rule-writing effort, said in an interview. The SEC first proposed capital and margin rules for swaps in 2012 but until Friday had failed to finalize them. In a move that caught the industry by surprise, the Republican-led SEC last year said it would try to finalize its Dodd-Frank regime.
Robert Jackson, the SEC's lone Democratic commissioner, voted against the final rule because it allows firms to use internal risk models to calculate the financial cushion for their swaps.
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Source: BusinessTimes - 🏆 15. / 51 Read more »