Derivatives still in flux as Dodd-Frank deadline looms
"The derivatives industry is "on message" about the benefits of clearing. Clearing is also required by US law following the passage of the Dodd-Frank Act last year. What will also be needed is an overhaul of the way swaps are traded. Newly invented entities with the ugly name of "swap execution facilities" or "Sefs" are currently in the works. However, as yet, no one knows what they will look like, what the creditworthiness of the Sefs will be, and whether the Sefs will be deemed safe enough by investors. The only certainty is that it will take a very long time to find out whether the new trading structure will fly."
Publication
Financial Times
Date
January 28, 2011
Cross References
Dodd-Frank Act, Title VII, Sec. 733