Concern about the Federal Reserve's pulling back on its purchases of Treasurys may be alleviated by new collateral rules for insurers, hedge funds and others, according to this article. The $633 trillion over-the-counter derivatives market will seek trillions of dollars' worth of Treasurys to satisfy collateral rules, observers say. "This is going to be a new, very powerful engine that drives demand for Treasurys," said Ted Leveroni of Omgeo, a trade processor.
Energy trade associations say Congress is off-base in its desire to tighten energy-market rules. A coalition of these groups argued in a letter to the Commodity Futures Trading Commission that energy end users should not have to play by the same rules that apply to financial companies when it comes to registering as a swaps dealer. The energy industry says that all Congress' efforts will accomplish is increased costs for consumers.
The Commodity Futures Trading Commission has found it difficult to realize the Dodd-Frank Act's goal of transparency on swaps, especially amid a dispute involving CME Group and Depository Trust and Clearing, Silla Brush writes.
CME Group is suing the Commodity Futures Trading Commission over the reporting of nonpublic swaps-transaction data to third parties. CME's litigation is part of the industry's efforts to oppose Dodd-Frank Act measures.
Legal and operational obstacles are putting buy-side firms in a bind in their effort to meet Dodd-Frank Act deadlines for clearing over-the-counter derivatives, speakers said at an industry gathering. One particular worry is the ability of smaller firms to find clearing members that can or will provide access to clearing services.