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Complex Securities

Donohue: 1940 Act - Derivatives, Leverage, and Risk Disclosure

April 22, 2009

On April 17, Andrew J. Donohue, Director of the SEC's Division of Investment Management, addressed the American Bar Association's spring meeting in Vancouver. His speech, entitled "Investment Company Act of 1940: Regulatory Gap between Paradigm and Reality," discussed "investment companies' use of derivatives… read more

SEC Permits CME to Operate as a Central CDS Counterparty

April 09, 2009

On March 13, the SEC issued conditional exemptive relief allowing the Chicago Mercantile Exchange, Inc. (the CME) to operate as a central counterparty for clearing credit default swaps. The conditional exemption was requested by the CME and Citadel Investment Group LLC, and will… read more

New Fair Value Guidance Proposed

April 03, 2009

The Financial Accounting Standards Board has proposed guidance on valuing financial assets with inactive markets. The proposed FASB Staff Position, FAS 157-e, would replace the FASB's October 2008 guidance, FAS 157-3, with regard to transactions in inactive markets. Rather than the approach of FAS… read more

PWG Initiatives on OTC Derivatives Oversight and Infrastructure

November 14, 2008

The President's Working Group on Financial Markets (PWG), comprised of the heads of the Treasury Department, the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, has announced a set of additional policy objectives to guide efforts to address challenges associated… read more

Idiot’s Guide to Credit Default Swaps

October 23, 2008

On his web log, Derivative Dribble, Charles Davi has created an eloquent, yet simple, explanation of credit default swaps for those of us who are not financial engineers.  In his piece, "Systematic Counterparty Confusion: Credit Default Swaps Demystified," Davi dispenses with… read more