US Fed Revises Risk Management Policy

The U.S. Federal Reserve said on Tuesday it has revised its policy which sets the risk management standards for the country’s largest clearing, payment and settlement firms.

The policy change brings the Fed’s standards in line with international rules for clearing agencies, such as rules on governance, credit risk and collateral.

The 2010 Dodd-Frank Wall Street reform law heightened the importance of clearing and settlement operations run by companies such as CME Group and Intercontinental Exchange.

 
The law requires over-the-counter derivatives to be centrally cleared, a process in which a clearinghouse stands in between two parties to guarantee trades.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza