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EVENT: Roundtable Jun 3, 2011


  • Transcript

    CFTC Staff Roundtable to Discuss Protection of Cleared Swaps Customer Collateral


    The staff from the Commodity Futures Trading Commission (CFTC) will hold a public roundtable to discuss issues related to the protection of cleared swaps customer collateral. The roundtable will assist the CFTC in the rulemaking process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act.

    When:

    Friday, June 3, 2011, 9:30 a.m. (ET)

    Where:

    CFTC’s Hearing Room, 1155 21st, NW, Washington DC

    Topic:

    Protection of Cleared Swaps Customer Collateral

    Listening Information:

     

    Call-in to a toll-free or toll-telephone line to connect to a live audio feed. Call-in participants should be prepared to provide their first name, last name and affiliation. Conference call information is listed below:

     

    Domestic Toll-Free: 866-844-9416

    International Toll: International Numbers

    Conference ID: 6066025

    This event is open to the public.

    CFTC Press Release 6043-11

    List of Participants

    Roundtable Video

    Notice of Proposed Rulemaking

    NOTE: Members of the public who wish to comment on the topics addressed at the discussion, or on any other topics related to customer collateral protection in the context of the Act, may do so.

    Submit a Comment
    View Comments

    Agenda

     

    Protection of Cleared Swaps Customer Collateral

    9:30 a.m.

    First Session: Implementation

      a. What steps would need to be taken to implement the Complete Legal Segregation model?

      b. How would those steps change if the Commission were to adopt the Legal Segregation with Recourse model, the Futures model, or an Optional Approach?

      c. What specific timing for implementation of the Complete Legal Segregation model might be appropriate?  How might such timing change if the Commission were to adopt the Legal Segregation with Recourse model, the Futures model, or an Optional Approach?

    10:35 a.m.

    Intermission

    10:55 a.m.

    Second Session: The Optional Approach

      a. How would the optional approaches in the Commission’s proposal be implemented?

      b. Bankruptcy Code considerations.

    12:00 noon

    Break for Lunch

    1:30 p.m.

    Third Session

    Advantages and disadvantages of the Complete Legal Segregation model, in comparison to the Legal Segregation with Recourse model, the Futures model, and any Optional Approach.

      a. What are the differences, if any, between swaps (cleared and uncleared) markets and futures markets that are relevant to this discussion?

      b. How important is portability to systemic risk?

      c. How do the operational costs vary across any of the models? What are the operational costs of each model?

      d. What are the risk costs of each model?  How can such costs be measured?

      e. Which constituencies would bear such operational and risk costs?  Among such constituencies, what proportion of such costs would each bear?

      f. To what extent is the reassignment of risk associated with a double default simply a transfer of liability (with associated payment) as opposed to an uncompensated transfer or a reassignment that imposes costs without significant offsetting benefits?

      g. To what extent do DCOs rely on fellow customer collateral?    How does a DCO account for the possibility of pre-default transfers by non-defaulting customers?

    5:00 p.m.

    Roundtable concludes


    Last Updated: June 29, 2011

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