An International Swaps Derivatives Association (Isda) report
has shown that the uncollateralised exposure of US commercial
banks in the over-the-counter (OTC) derivatives markets, a key
target of Dodd-Frank reforms, is lower than expected.
But attorneys have warned against downplaying the exposure of
other market participants and benefit of
Dodd-Frank’s collateral requirements.
The August report, titled Counterparty Credit Risk Management
in the US OTC Derivatives Markets, estimates that the
uncollateralised exposure of US banks which will be subject to
Dodd-Frank reforms is $30.4 billion.
The report, based on...