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Regulation

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  • A proposed Dodd-Frank Act rule requiring firms to post initial margin on uncleared over-the-counter interest rate derivatives could result in USD1.4 trillion in new capital charges, according to Paul Rowady, senior analyst at research and advisory firm TABB Group.
  • The Commodity Futures Trading Commission and Securities and Exchange Commission should do their best to align U.S. swaps regulations with those of overseas jurisdictions to avoid market disruption, according to MarkitSERV CEO Jeff Gooch.
  • iShares, the exchange-traded funds provider managed by BlackRock, has proposed tougher transparency and disclosure requirements in ETF products, including best practices related to swaps and counterparty exposure.
  • The U.K. Financial Services Authority today released a consultation paper on changes it plans to make to guidance on what financial resources recognized exchanges and clearinghouses should have.
  • The swap execution facilities market are having to wait on regulators to define a key part of the rules before they can hammer out governance and compliance structures, according to panelists at the Wholesale Market Brokers’ Association’s SEFCON II conference in New York yesterday.
  • Commodity Futures Trading Commission Chairman Gary Gensler was unable to provide any further clarity on whether or not voice broking will continue in the over-the-counter derivatives market once swap execution facilities and pre-trade transparency are implemented.