Counting our blessings and wishing you more.
Friday, December 30, 2016
Let's recap
In case you missed it . . .
To guide your compliance strategies, actions, and investments in 2017 and beyond

Bond managers can earn extra half percentage point interest; Eurodollar futures trim risk in commercial paper trade (Dec 29)

What global bank regulators are fighting about
Rarely have the people who look after the global banking system argued so stridently or so publicly (Dec 28)

Despite rising demand for floating rate loans, the market for collateralized loan obligations in the U.S. enters the New Year with daunting prospects as a new administration assumes power and risk retention rules take effect (Dec 27)

2017 may well be the year in which North American institutional dark pools flourish, and in which MiFID's restrictions on European soil, and failure by European banks to operate according to U.S. rulings may decimate European dark liquidity (Dec 27)
Sparing Dodd-Frank's derivatives framework
Will they or won't they?
(Dec 30) "Dismantling" Dodd-Frank could make implementing Title VII of the law, which requires the Commodity Futures Trading Commission to regulate most swaps, unlikely. The chairman of the House Financial Services Committee, which would lead the effort to overhaul financial regulations, is satisfied with the several Title VII changes Congress made over the last two years and won't make further revisions any time soon. 

One such change, tucked into the December 2015 Omnibus spending bill, rolled back a little-known Dodd-Frank provision that might have restricted the volume of trading in derivatives, and allowed banks to trade them in entities holding deposits guaranteed by the Federal Deposit Insurance Corp. and subject to borrowing at the Federal Reserve's discount window.

If no further legislative revisions are made, any Dodd-Frank related action would be made by the CFTC, which may focus on ensuring that end-users (non-financial commercial users of derivatives) are spared from certain regulations imposed on larger market participants, such as Wall Street banks. This could lead to refining rules on margin and recordkeeping requirements and finalizing an $8 billion "de minimis" threshold - up from $3 billion - for swaps market participants to be defined as dealers. 

Swaps trading rules also are expected to be in for reworking, including the structure of swap execution facilities and how certain swaps are mandated for trading. 

Read more:
Binge reading disorder
Hand-curated, chosen with love
An apothecary cures the things that ail you.
Historically, bartenders have done the same. Explore the strong connection between the two: a recipe for a "Tippling Bros. Magical Pain Extractor" here and a recipe for the "Corpse Reviver No. 2" here.

The top 5 policy & finance stories in 2016
Paris pledges were tested, green finance gained ground, climate reporting caught on, aviation went green (sort of), and Bill Gates launched a most excellent energy venture. Here are the policy and finance stories that made the headlines in 2016

Politicians' most bogus science-related claims of 2016
From climate change to Zika, lawmakers made a variety of spurious statements this year

Why time management is ruining our lives
All of our efforts to be more productive backfire - and only make us feel even busier and more stressed

The future of financial infrastructure
An ambitious look at how blockchain can reshape financial services