Regulatory effects of clearing FX Derivatives upon Post-Trade & Back Office processes

Nichada Katchamart, Back Office Product Manager and Mark Biezup, FX Product Manager, at SunGard Sierra discuss the need for flexibility in preparing for Dodd-Frank.

First Published: e-Forex Magazine 44 / Viewpoint / July, 2011

The regulatory changes for clearing FX derivatives that are proposed to be implemented by the Dodd-Frank Act will have multiple repercussions upon post-trade and back office operations. The proposed central clearing party processes for FX derivatives will require new technology and personnel investments to comply with these regulations. Even with the proposed exclusion of FX Forwards and FX Swaps from this process, at the very least there will be reporting demands for the trade repositories.  Nichada Katchamart As the requirements for the implementation of Dodd-Frank are still being finalized, the need for flexibility in connectivity, reporting and compliancy will be important factors in how entities meet these regulatory requirements. Connectivity with new platforms The move to an exchange-style trading and clearing model will necessitate changes in connectivity to Swap Execution Facilities (SEF), Central Counterparties (CCP), and Swap Data Repositories (SDR). SEFs will provide trade execution...continued

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