OTC Derivatives Reform in the U.S.
This is just the beginning...
Since the signing of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the over-the-counter (OTC) derivatives market may be subject to the most significant transformation.
This paper focuses on four key mandates arising from Dodd-Frank for OTC derivatives and attempts to define many of the “unknowns” and compliance challenges across OTC derivatives market participants: users, dealers, and infrastructure providers. The areas of focus are:
- Electronic trading via swap execution facilities (SEFs)
- Clearing through central counterparties (CCPs)
- Reporting to swaps data repositories (SDRs)
- Adherence to business conduct standards