Derivatives Guidance You Can Count On

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January 8, 2016

Clearing Relief Extended to Small Bank Holding Companies

The CFTC issued welcome no-action relief today in response to ABA and other industry requests to include certain bank holding companies (BHCs) and savings and loan holding companies (SLHCs) within the “small bank” clearing relief available under CFTC Regulation 50.50(d).  The CFTC granted this request in No-Action Letter 16-01 under certain conditions.

November 6, 2015

Create Low-Cost Synthetic Term Funding As the Fed Prepares For Its First Rate Hike

As markets gets ready for the FOMC to begin the tightening cycle, banks are considering various options on the funding side of their balance sheet.  For banks looking to fund beyond their organic deposit-gathering capacity, there are a variety of funding sources available, and each one has its own benefits and risks.

We present an idea that allows banks to create term funding at considerably lower rates compared to other traditional fixed rate wholesale funding alternatives available.  We also present a market anomaly in 1s3s basis that allows a bank to reduce their cost of funds on existing 3 month LIBOR swaps by switching them to swaps tied to 1 month LIBOR.

October 27, 2015

U.S. Prudential Regulators Finalize Uncleared Derivative Margin Rules

FDIC and OCC Approve Long Awaited Final Rule

Earlier this year, Derivative Path sent out a Regulatory Update regarding a bill passed by Congress providing regulatory relief from anticipated uncleared swap margin rules for non-financial end users and other counterparties eligible for an end user exception.  The legislation amended Dodd-Frank, exempting certain transactions from future initial and variation margin requirements, while requiring regulators to promulgate a final rule on margin requirements.

On October 22, 2015, the FDIC and OCC released a joint final rule in conjunction with other U.S. prudential regulators on swap margin requirements, ending a long period of uncertainty and delivering what should be welcome relief to community and regional banks and their hedging clients.

We provide a detailed analysis of the rule, its applicability to regional and community banks, commercial end users, and what to look for in the next several months.  We also provide a simple grid of important dates for various counterparties.

September 24, 2015

Interest Rate Strategies for 2015 and Beyond

Pradeep Bhatia, Co-CEO, Derivative Path, Inc. presented at the Western Independent Bankers 2015 Education Summit and Expo in San Diego, CA on September 23, 2015.

Community banks have been challenged with organic growth headwinds and net interest margin compression. As the Fed begins to tighten, many community banks are considering various strategies to protect their margins and enhance their fee income. Is your balance sheet positioned well for the next interest rate cycle? This session introduced strategies that help protect margins and enhance fee income.

September 6, 2014

Compliance Update - Uncleared Margining Rules

U.S. Regulators choose not to impose new margining requirements on end-user hedging

May 29, 2014

Compliance Best Practices in the Post Dodd-Frank World

An overview of Dodd-Frank Additional Requirements for Registered Swap Dealers Requirements for Non-Swap Dealers

March 15, 2014

FASB Approves Simplified Hedge Accounting Approach on Pay Fixed Swaps for Private Companies

On January 16th, the Financial Accounting Standards Board (FASB) announced its 6-1 Board approval of a proposal made by the Private Company Council (PCC).


February 6, 2014

Summary of Final Rule on Derivatives from the NCUA

After keeping the Credit Union industry essentially on hold with its ability to use Interest Rate Derivatives to manage their interest rate risk since the Proposed Rule on Derivatives was released in May 2013, last week the National Credit Union Administration (“NCUA”) released its Final Rule on Derivatives.

January 31, 2014

New SEF rules – What’s a SEF, What is MAT, and Do I Need to Care?

This month the Commodity Futures Trading Commission (“CFTC”) has certified the first several submissions by SEFs.

November 15, 2013

Interest Rate Derivatives Under Dodd Frank

A Regulatory Update for Financial and Commercial End Users Presentation


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