Delay US non-cleared margin rules, industry tells Congress By Peter Madigan June 14, 2016 “If I was a European entity and I had the choice of facing a European bank or a US bank, one who was subject to US margin rules that started earlier and another that is subject to European rules that had not come into effect, if those start dates did not match I would have an incentive to trade with the European bank,” said Luke Zubrod, director of risk and regulatory advisory services at Chatham Financial, which advises derivatives end-users. “That is a real-world implication of that misalignment on those dates. We should endeavour to move forward in lockstep with Europe.” Read More *Registration may be required for Risk.net

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It’s a classic scene from Monty Python and the Holy Grail. On his search for knights who will help him find the Holy Grail, King Arthur halts his trusty steed (and by steed, we mean coconuts his loyal servant Patsy rhythmically bangs together) to speak with a mud-pie-making peasant named Dennis. Unfortunately for Arthur, the unhelpful peasant has embraced some rather anachronistic notions of collectivism, accusing the king of “exploiting the workers” and “hanging on to outdated imperialist dogma which perpetuates economic and social differences.” At the revelation that Arthur ascended to the throne because the Lady of the Lake held forth the sword Excalibur to him, Dennis retorts that “supreme executive authority derives from a mandate from the masses, not from some farcical aquatic ceremony.” King Arthur initially listens to Dennis with some patience, but as the peasant waxes…

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The thrill of taking risks can be exhilarating. The excitement comes from wagering a substantial potential loss to acquire a meaningful possible gain. This interplay is what draws us to extreme sports or to the middle of the desert to siphon money into slot machines. But when the wellbeing of your business is on the line, that’s not a thrill most people crave. Imagine how Warren Buffet must have felt going naked on his recent one billion dollar bet on the NCAA March Madness playoffs’ brackets. Buffet teamed up with Quicken Loans to sponsor the Billion Dollar Bracket Challenge, where a one billion dollar winning goes to anyone submitting a bracket correctly picking every winner and loser in the March Madness college basketball tournament. Alright, so in reality the bet was not that exciting at all. The odds were in…

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President Obama this week issued an executive order that would, in his words, “[make] it our mission to root out regulations that conflict, that are not worth the cost, or that are just plain dumb.” He observed that “regulations do have costs” and that “we have to make tough decisions about whether those costs are necessary.” As we have now for months been engaged in the regulatory rulemaking process, we have a keen appreciation for this Presidential initiative. At the same time, however, we note that the President’s executive order has no force or effect on independent agencies such as the CFTC, SEC and Federal Reserve, who are hard at work writing hundreds of pages of rules delegated to them by Congress as part of financial legislation. Despite the limited reach of the order, we appreciate its sentiments and are…

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