Tuesday, December 6, 2011

House Subcommittee Approves Legislation Allowing Pension Plans to Use Swaps to Hedge Risks

Author: David Schwartz J.D. CPA
On November 15, the House Capital Markets Subcommittee approved legislation that would amend the Employee Retirement Income Security Act, the Commodity Exchange Act, and the Securities Exchange Act to ensure that pension plans can use swaps to hedge risks.  HR 3045 creates an exception for ERISA pension plans allowing them to engage in swap transactions without their swap dealer counterparties incorrectly being labeled as fiduciaries.
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Friday, December 2, 2011

Taiwan Moves to Discourage Short Selling and Securities Lending

Author: David Schwartz J.D. CPA
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Tuesday, November 29, 2011

Widening CDS Spreads Worry Global Financial Markets

Author: David Schwartz J.D. CPA
Over the past few months, spreads for credit default swaps (CDS) have widened quite dramatically. These widening CDS spreads are a clear sign of stress on banks, and that the cost of protecting financial
institution and government debt against default is steadily rising, causing worry across the global financial markets.
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Monday, November 28, 2011

European Parliament Restricts Short Selling and Use of Credit Default Swaps

Author: David Schwartz J.D. CPA
In an effort to address regulatory fragmentation in short selling regulations throughout the EU, The European Parliament has adopted a regulation to harmonize the rules on short selling and credit default swaps.  Regulation (2010) 0482 (the "Regulation") is limited in scope and imposes restrictions on short selling and credit default swaps to prevent a disorderly decline in the price of a financial instrument.  The Regulation does not impose other types of restrictions such as position limits or restrictions on products, however.
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Friday, November 25, 2011

SEC Chairman on the Challenges of Regulating Derivatives

Author: David Schwartz J.D. CPA
In a dialog at the Managed Funds Association Outlook 2011 seminar held in October, SEC Chairman Mary Schapiro commented on the international and domestic challenges regulators face in coordinating the regulation of derivatives. From this dialog we can take away some nuggets of assurance that the process of regulating OTC derivatives is being thoughtfully considered, efforts are being made to coordinate both domestically and internationally, and that the implementation process will contain few surprises. 
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