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Forex swaps debate rages
PROMINENT asset managers and a key derivatives trade group are urging the US Treasury to exempt foreign exchange swaps and forwards from new derivatives regulations that would require central clearing under a revamp of US financial rules enacted in July.
But exchanges that stand to benefit from the shift and two Democratic US senators say foreign exchange derivatives were standard instruments that should be forced onto central clearing platforms as the landmark legislation intended.
The Dodd-Frank financial reform act gave US Treasury secretary Timothy Geithner the authority to decide whether the $53.1 trillion market for foreign exchange derivatives should receive an exemption from the new regulations.