The swaps carve-out conundrum

Section 716 of the Dodd-Frank Act will force swap dealers to hive off certain derivatives businesses into separate affiliates. But the legislation is fiendishly complicated, riddled with oversights and requires daring interpretative leaps, which has left both bankers and their lawyers flummoxed. Matt Cameron reports

risk-cover-story-illo-0810

Former US president Harry Truman once said: “If you can’t convince them, confuse them.” US lawmakers appear to have done just that, passing a piece of legislation to regulate the over-the-counter derivatives markets last month that is so complicated, no-one yet understands how it will work. In fact, lawyers claim the legislation is peppered with ambiguities, has little logic behind it, and is likely to require numerous clarifications.

The nub of the matter is a controversial eight-page provision

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