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All five regulatory agencies put their stamp of approval on the Volcker Rule yesterday, effectively ending proprietary trading by banks and holding their chief executives more accountable for trading activities.
Though central clearing of swaps was intended to reduce counterparty risk, it comes with an unfortunate side effect: It now will take two trades to effect a termination, which threatens to increase operational complexity and risk.
Faced with intensifying regulatory burdens and a challenging business environment, capital markets firms may find it difficult to drive meaningful change. But now is precisely the time firms need to innovate most.
There is renewed interest in emerging markets -- primarily due to the fact that the top emerging markets are growing while growth in the so-called developed countries has been anemic and, in some European countries, declining.
Over the years, the value of pole position in NASCAR and Formula One races has been on the decline, as winning has more to do with having the right tools and equipment than where you start.
There has been a lot of hype about how buy-side participants will stay informed of their available credit with clearing banks to ensure their swaps trades will clear as mandated by Dodd-Frank.
The Dodd-Frank Act may just be the best example of unintended consequences in action.
Regulatory reform has transformed collateral management into a complex, costly exercise involving higher volumes of collateral, increased margin calls, and interaction with more counterparties.
When it comes to risk attribution, most people look at the contributions made by different asset classes, sectors or investment strategies. But very few look to assign attribution to volatility and correlation.
The European Securities and Markets Authority laid out its views on the future of the European markets in two papers totaling more than 800 pages.