What is Fiat Currency? Definition: fi·at [fee-aht, -at; fahy-uh t, -at] noun: fiat; plural: fiats A formal authorization or proposition; a decree. "The King ruled by fiat”, “A political union imposed through imperial fiat”   An arbitrary order. “By royal fiat” Fiat currency defined: Fiat currency is legal tender, not backed by collateral...

DERIVATIVE STATISTICS ISDA released the derivative statistics report for 1Q15. Click here to read the publication, get market stats, and read the trade organizations writers’ view of the quarter ahead. DERIVATIVES TO-DO LIST FOR 2016 Two pieces which outline the work ahead of us in 2016: The Impact of Compression...

ISDAfix Swap Rate Manipulation - Q&A The ISDAfix Benchmark Swap Rate Manipulation lawsuit involves 13 banks, all sued by Alaska Electrical Pension Board (AEPB) and other plaintiffs. The banks named are: Bank of America, Barclays, BNP Paribas, Citibank, Credit Suisse, Deutschebank, Goldman Sachs, Royal Bank of...

Making Sense of Derivatives Reform These Derivative Cheat Sheets will help make sense of derivatives reform. [caption id="attachment_6272" align="aligncenter" width="295"] Click on the image to view matrices.[/caption] The attached PDF includes 3 resources: Page 1 - Matrix of the differences between Cleared and Uncleared Swaps  (Source: MHDS LLC) Page 2...

After 7 years of preparation, the UK courts are bringing individuals to trial as the LIBOR scandal heads to court.  SUSPICIOUS DEATHS & SUICIDES You may recall during 4Q13 and 1Q14 when 12 bankers committed suicide. The stories are as varied as they are sordid. The media...

1Q15 ISDA SURVEY It’s May 2015, almost 8 ½ years since the Great Credit Crisis began, and the ISDA has released their 1Q15 survey of market participants. With the Dodd-Frank bills having been passed, procedures have been implemented and processes have changed. RESPONDENTS The survey includes 376 respondents....

POINT-COUNTERPOINT: THE REPEAL OF DODD-FRANK SECTION 716 Section 716, the "push out" rule, of the Dodd-Frank Act of 2010 was repealed as part of (read as: buried deep into) the budget bill late last year. There seems to be confusion as to what the repeal means....

WHAT’S THE DIFFERENCE BETWEEN FINANCIAL SERVICE COMPANIES? When I consider the FSOC’s SIFI Designation for non-banks, I'm reminded of two things – the difference between banks & insurance companies, and the joke: “Do you know the difference between an elephant and a dozen eggs?”  “No, what’s the difference?” "Well,...

SIFI DESIGNATION FOR NON-BANK FINANCIAL COMPANIES The Financial Stability Oversight Council (FSOC) approves the non-bank financial institutions viewed as Significantly Important Financial institutions (SIFIs). SIFI Designation requires all eight regulators: OCC, FDIC, CFPB, FHFA, FRB, NCUA, CFTC & SEC, one independent member with insurance expertise, and...