Deliverable Forex Derivatives

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What did the U.S. Treasury Department exempt from key Dodd–Frank regulations?

Interest rate swaps

Deliverable forex derivatives (correct)

Central clearing

Platform trading

What was the basis of the exemption of forex derivatives from key Dodd–Frank regulations?

Minimal impact on systemic risk

Small amount of counterparty risk (correct)

Low market volatility

High liquidity

What did the author of the text suggest regarding the counterparty risk of deliverable forex derivatives?

It is negligible compared to other derivatives

It is minimal and manageable

It is not as small as suggested (correct)

It is not significant in the forex market

What aspects of deliverable forex derivatives remain lightly regulated?

All of the above Signup and view all the answers

What did the U.S. Treasury Department exempt forex derivatives from involving margin, central clearing, and platform trading?

Dodd–Frank regulations Signup and view all the answers

What significant steps have been made in the United States and Japan toward pretrade price transparency and competitive swap trading?

Migration of OTC trade toward exchanges and MTFs Signup and view all the answers

Where are more than two-thirds of new trades in standardized interest rate swap and CDS index trading in the United States conducted?

MTFs Signup and view all the answers

How do buy-side firms typically obtain their positions on MTFs?

Multiple dealers responding to requests for quotes (RFQ) Signup and view all the answers

What is the result of interdealer trade conducted on MTFs that use a central limit order book?

A 'two-tiered' market Signup and view all the answers

What is a shortcoming of the reforms in terms of improving competition and lowering trading costs to buy-side market participants?

Not bringing all wholesale market participants into the reforms Signup and view all the answers

Deliverable Forex Derivatives

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Questions and Answers

What did the U.S. Treasury Department exempt from key Dodd–Frank regulations?

What was the basis of the exemption of forex derivatives from key Dodd–Frank regulations?

What did the author of the text suggest regarding the counterparty risk of deliverable forex derivatives?

What aspects of deliverable forex derivatives remain lightly regulated?

What did the U.S. Treasury Department exempt forex derivatives from involving margin, central clearing, and platform trading?

What significant steps have been made in the United States and Japan toward pretrade price transparency and competitive swap trading?

Where are more than two-thirds of new trades in standardized interest rate swap and CDS index trading in the United States conducted?

How do buy-side firms typically obtain their positions on MTFs?

What is the result of interdealer trade conducted on MTFs that use a central limit order book?

What is a shortcoming of the reforms in terms of improving competition and lowering trading costs to buy-side market participants?

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