As 2016 comes to a close the regulatory agenda shows no signs of slowing. While the FX market itself has largely not been directly addressed by new regulations, it has been swept up in many of the broader OTC market reforms.
March 1 will mark the implementation of the variation margin requirements for non-cleared derivatives, meaning that thousands of counterparties – including asset managers, pension funds, insurance companies and hedge funds – will need to change their existing collateral support agreements, or set up new ones, before this date.
2017 will also be the year when firms have to brace themselves for the impact of Mifid II, due to be implemented at the beginning of 2018. This regulation is set to impose best-execution standards on non-equity securities, including fixed income and foreign exchange.
Although there has been no regulatory mandate to centrally clear FX options or NDFs the expectation in many quarters is that Basel III requirements, combined with new margin requirements for un-cleared derivatives, will push more trading of these products into CCPs.
And of course, it’s impossible to discuss the regulatory environment without examining the impact that the recent US election might have. Not only will Donald Trump’s victory mean that there will be new financial regulators in Washington, but the President-elect has also advocated repealing the Dodd-Frank Act.
With so many moving parts, what do FX traders need to be aware of heading into next year?
This panel will also discuss:
• Getting ahead of margin requirement deadlines
• How to implement and demonstrate best execution
• What does Trump’s victory mean for FX regulations?
• The future of cross-border regulation
• Central clearing: preparing for a new paradigm
Galen Stops, Deputy Editor, Profit & Loss
Justin Slaughter, Chief Policy Advisor & Special Counsel to Commodity Futures Trading Commissioner Sharon Bowen (CFTC)
Edward Brown, Chief Executive Officer, GTX SEF
Gabriel Rosenberg, Partner, Davis Polk
Robin Poynder, Regulatory Advisor, Velador Associates
Register for this webinar here.