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 Originally published September 24, 2014, updated June 19, 2015 13 banks sued by Alaska Electrical Pension Board (AEPB) over ISDAfix Swap Rate Manipulation. The banks named are Bank of America, Barlclays, BNP Paribas, Citibank, Credit Suisse, Deutschebank, Goldman Sachs, Royal Bank of...

These Derivative Cheat Sheets will help make sense of derivatives reform. The attached PDF file includes 3 resources: Page 1 - matrix of the various aspects and differences between Clearing a swap and entering into a bilateral swap (OTC)   (Source: MHDS LLC) Page 2 - Haircuts suggested...

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 the are sordid. The media linked as...

1Q15 ISDA SURVEY It’s May 2015, almost 8 ½ years since the Great Credit Crisis began and ISDA did their 1Q15 survey of market participants.  With Dodd-Frank bills have been passed; procedures have been implemented and processes have changed. RESPONDENTS The survey includes 376 respondents. Respondents did not have...

Point-Counterpoint: The Repeal of Section 716 of the Dodd-Frank Act Section 716, the "push out" rule (Dodd-Frank Act of 2010) was repealed as part of the budget bill late last year. There seems to be confusion as to what Section 716 was or why repeal This...

WHATS THE DIFFERENCE BETWEEN FINANCIAL SERVICE COMPANIES When I consider the FSOC’s SIFI Designation for non-banks, the Difference Between Banks & Insurance Companies, I’m reminded of the joke: A: “Do you know the difference between an elephant and a dozen eggs?” B: “No, what’s the difference?” B: "Well if you don’t know,...

SIFI DESIGNATION FOR NON-BANK FINANCIAL COMPANIES (NFC) A veritable pot of alphabet soup was put together by the FSOC to handle the task of designating nonfinancial companies as SIFIs. Eight regulators: OCC, FDIC, CFPB, FHFA, FRB, NCUA, CFTC & SEC, one independent member with insurance “expertise” and...