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Large swaps dealers would need to hold more capital, post collateral against riskier trades and take steps to protect their customers’ money under new rules proposed by U.S. securities regulators on Wednesday.
The proposal, put out for public comment by the Securities and Exchange Commission in a 5-0 vote, is a key piece of the 2010 Dodd-Frank Wall Street reform law, which aims to shed more light on the opaque $640 trillion over-the-counter derivatives market.
It would apply to market makers such as Goldman Sachs and Morgan Stanley, as well as to firms that trade heavily in certain over-the-counter derivatives.
