REGULATION & SUPERVISION OF THE OTC DERIVATIVES MARKET
This course is designed to provide students with a comprehensive understanding of the regulatory framework and supervision of the OTC derivatives market. The course will cover a wide range of topics, including the structure of the OTC derivatives market, market participants, regulatory bodies, clearing and settlement, margining and collateral management, reporting and transparency, as well as the regulation of specific products.
Course Objectives:
By the end of this course, students will have achieved the following objectives:
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Understand the structure and importance of the OTC derivatives market and the key differences between exchange-traded derivatives and OTC derivatives.
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Identify the different types of market participants and products in the OTC derivatives market and explain the economic functions and risks associated with each product.
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Understand the regulatory framework for OTC derivatives and the impact of key regulations, such as the Dodd-Frank Act and Basel III.
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Understand the role of central counterparties (CCPs) in reducing counterparty credit risk and the trade confirmation and settlement process.
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Explain the different types of margin requirements and their purpose, as well as the importance of collateral management and optimization.
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Understand the importance of trade reporting and transparency in the OTC derivatives market and the regulatory requirements related to these areas.
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Analyze the regulation of specific OTC derivatives products, including interest rate derivatives, credit derivatives, and foreign exchange derivatives.
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Understand the impact of international regulations on the OTC derivatives market and the potential future evolution of this market.