Section 716: The do-nothing approach

Dodd-Frank’s swaps push-out rule takes effect for non-US banks in July 2013, but many are said to be doing nothing to prepare – a gamble that the requirement will be repealed before it can force them to restructure their business. Peter Madigan reports

slow-sign

The ostrich has long been defamed by the rumour that it sticks its head in the sand when confronted with danger. A nonsensical myth – if only from an evolutionary standpoint – it is nevertheless the tactic that derivatives dealers are said to be adopting in the run-up to the implementation of section 716 of the Dodd-Frank Act.

The rule – known colloquially as the swaps push-out or the Lincoln amendment, after former Arkansas senator Blanche Lincoln, who introduced the measure – forces banks

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here