CFTC’s O’Malia voices concern about cost of clearing swaps
CFTC Commissioner Scott D. O'Malia said Tuesday that new rules spawned by the Dodd-Frank Wall Street Reform Act could make it "too costly to clear" credit default and other swaps.
He said regulators such as the CFTC will be challenged to implement the new rules in ways that do not make it "too costly to clear." "Regardless of what the new market structures ultimately look like, hedging commercial risk and operating in general will become more expensive as costs increase across the board, from trading and clearing, to compliance and reporting," he said.
Publication
Securities Technology Monitor
Date
January 26, 2011
Cross References
Dodd-Frank Act, Title VII, Sec. 733