Other Sectors

Jaki Walsh

This chapter will examine the market participants that will become significant under the new paradigm: custodian banks, collateral transformation agencies, debt capital markets (DCMs), etc. Following the 2007–08 financial crisis, in 2009 the international forum for governments and central bank governors from the 20 major economies (G20) made a commitment to financial regulatory reform. This triggered multi-year regulatory change implemented through Basel III, the Capital Requirement Directive and Regulation (CRD/CRR), the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank), European Market Infrastructure Regulation (EMIR), the Basel Committee on Banking Supervision and International Organization of Securities Commissions (BCBS–IOSCO) margin requirements for non-centrally cleared derivatives and the Markets in Financial Instruments Directive (MiFID II).

CHANGING RELATIONSHIPS BETWEEN MARKET PARTICIPANTS

Prior to these regulatory changes, the traditional roles and order of relationships within the derivatives market was based on a single line structure with each market participant having direct contact only with the single touch point behind or ahead in the