Frances Maguire
Frances Maguire

Addressing the complexity of new post trade operations for FX clearing and reporting

Incoming regulations will add a wholly new layer of complexity to the FX back office. Frances Maguire talks to firms about the challenges ahead and what is being done now to prepare.

The Dodd-Frank Act, which became effective in July 2010, is still a work in progress requiring, according to one law firm’s estimation, that regulators make 243 new rules, conduct 67 studies and issue 22 periodic reports. The European Market Infrastructure Regulation (EMIR), which will regulate on over-the-counter derivatives, central counterparties and trade repositories, and drawn up in response to G20’s commitment to have all standardised OTC derivatives cleared through a central counterparty in the European Union by the end of 2012 as part of the worldwide effort to reduce counterparty and operational risk in the OTC derivatives market, is further ahead and expected to be adopted by the EU member states by the year end. One difficulty for the financial industry, however, is that Swap Execution Facilities (SEFs), which come under the remit of the US Commodity Futures Trading Commission (CFTC) have not yet been given a rigid definition. Regulations were required to be finalised by 15 July...continued

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