Central Clearing Rule Looms For Trades That Nailed JPMorgan

Law360, New York (May 22, 2012, 2:43 PM EDT) -- Derivative transactions like the ones believed to have caused JPMorgan Chase & Co.'s surprise $2 billion loss will be among the first to be required to go through central clearing mechanisms, the top U.S. regulator of those financial products told a Senate panel Tuesday.

In testimony before the Senate banking committee, U.S. Commodity Futures Trading Commission Chairman Gary Gensler said his agency would allow for comments on a proposal to require clearinghouse guarantees for interest rate and credit-default indexes later this summer.

“Standard swaps between financial...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.