Topic: Derivatives

Comment Letter on Clearing Exemption for Certain Swaps Entered Into by Cooperatives

August 16, 2012 | American Bankers Association (ABA)

The ABA strenuously opposes the clearing exemption for certain swaps entered into by cooperatives. The CFTC has no policy justification for adopting the exemption, which grants financial institutions that are cooperatives a broader clearing exemption than banks. The exemption is arbitrary and capricious and creates competitive harm to banks while providing additional benefits to cooperatives, including a credit union with nearly $50 billion in assets and a Farm Credit bank with over $90 billion in assets.

Why US swap definitions need clarifying quickly

July 23, 2012 | International Financial Law Review (IFLR)

This article focuses on the implementation of the new regulations for the swap markets, including registration, reporting, business conduct, and other requirements. It also discusses the cross-border implications for swap dealers and major swap participants. Diana is quoted as encouraging the CFTC to adhere to its pledge to work with market participants to ensure a smooth transition.

CFTC Said to Exempt Banks Under $10 Billion From Clearing

July 6, 2012 | Bloomberg News by Silla Brush

The article provides an overview of the role of clearing and the Dodd-Frank Act mandate to move most swaps to clearinghouses. It forecasted an exemption for banks with less than $10 billion in assets that use swaps to hedge and mitigate risk. Diana is quoted as advocating for a risk-based measurement because it will better reflect potential market risk.

Derivatives and Legal Lending Limits: Industry Perspectives

March 2012 | Conference of State Bank Supervisors (CSBS)

Diana provided formal training for state bank supervisors about the Dodd-Frank Act mandated new regulatory framework for the swaps markets. The presentation included background information about regulations and pending federal and state legislation. She focused on the measurement of credit exposure now included in lending limits for both national and state-chartered banks, single counterparty credit limits, margin requirements, affiliate transactions, and more.

Comment Letter on Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant” and “Eligible Contract Participant”

February 14, 2012 | American Bankers Association (ABA)

The ABA urged the CFTC not to extend the Dodd-Frank Act swap dealer exemption for swaps entered into in connection with originating loans to the federal Farm Credit System (FCS). The statutory exemption is available only to insured depository institutions as defined in the Federal Deposit Insurance Act, which does not include the FCS. The CFTC limited the exemption to banks and savings associations.