|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
SEC Finalizes Rules For Reviewing Swap Clearing
Sarah N. Lynch
Reuters. June 28, 2012
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EXCERPT: U.S. securities regulators finalized new rules on Thursday that will help the agency determine whether certain swaps should be cleared, a process that protects against default. The Securities and Exchange Commission's rules lay out how clearing agencies, such as IntercontinentalExchange's ICE Credit Clear, will provide information to regulators about the swaps they plan to accept for clearing. The regulations are required by the 2010 Dodd-Frank Wall Street reform law, which gave the SEC and Commodity Futures Trading Commission joint oversight of the $708 trillion over-the-counter derivatives market. One key pillar of the new derivatives regulations would require many of these derivatives, known as "swaps," to be routed through clearinghouses. Clearinghouses stand in between two parties to guarantee trades. In addition to the rules laying out clearing submissions, the SEC also approved another set of rules that define and describe when clearinghouses deemed to be "systemically important" need to file certain advanced notices to regulators. Systemically important clearinghouses are clearing agencies who are large and interconnected to the financial system. |
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