CFTC moves on OTC regulation

摘要

While markets participants are concerned as the CFTC begins the long process of rule writing, at least some questions about adding over-the-counter (OTC) swaps to clearinghouses were answered in rules the CFTC proposed on Oct. 1.rnThe first proposed rule sets margin requirements for derivatives clearing organizations (DCOs) and specifies amounts of capital that must be kept available. While the proposal provides that ordinary clearinghouses (ones not deemed systemically important) keep enough capital to cover one major clearing member default and significant clearinghouses (systemically important) have enough to cover two, some won-rnder if this is enough. "One can argue whether the coverage of the clearinghouses, the amount of money they are to put aside, is enough," says Gary DeWaal, general counsel for Newedge. "I look back at 2008 and don't remember just one firm having trouble. I [am skeptical] that only having capital to cover one big default is enough."