Regulatory Alerts2016-12-16 | 2016-29368Capital Requirements of Swap Dealers and Major Swap Participants
The Commodity Futures Trading Commission proposes new regulations to implement statutory capital, liquidity, and financial reporting requirements for swap dealers and major swap participants not subject to prudential regulator rules. The proposal outlines three alternative capital approaches for swap dealers based on bank-based, net liquid assets, or tangible net worth standards, while establishing a tangible net worth requirement for major swap participants. Additionally, the Commission seeks to amend existing capital rules for futures commission merchants to include specific market and credit risk charges for uncleared swaps and security-based swaps.
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