U.S. Regulators Tighten Swaps Collateral Regulations
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U.S. financial regulators eased proposed collateral requirements for swaps traded between banks, manufacturers and other firms by seeking to limit the impact on smaller companies and global liquidity.
The proposal, adopted yesterday by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency, seeks to free so-called end users -- commercial manufacturers and other non-financial firms that use swaps to hedge business risks -- from the requirements.