Risk management rules for swaps players win approval-CFTC
WASHINGTON Aug 27 (Reuters) - Major swaps players will face new risk management requirements under rules finalized by the Commodity Futures Trading Commission on Monday.
The rules, which the agency approved unanimously in a closed-door vote, will dictate the way major swaps industry participants document and reconcile their swaps trades.
They also detail how swaps will be valued and netted.
"Proper documentation of swaps is critical to reducing risk in the bilaterally traded swaps market," the CFTC said in a statement.
The CFTC was tasked by the 2010 Dodd-Frank financial reform with increasing transparency and limiting risk in the $650 trillion over-the-counter swaps market, which was heavily implicated in the 2007-2009 financial crisis.
The risk management rules were first proposed in December 2010.
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