However, Fitch expects Central Bank swap
and repo facilities to support FX liquidity and enable banks to meet sizeable external debt maturities in 2015.
The SEC won't require posting of margins by nonfinancial companies dealing with security-based swap dealers, just like the Commodity Futures Trading Commission (CFTC) proposal that focuses on bank swap
In stark contrast, the prudential regulators have put forward draft rules that prohibit bank swap
dealers from posting margin to their counterparties and provide no capital threshold exemptions for end-users.
Under the proposed margin rule from bank regulators, including the Fed, all bank swap
dealers are required to collect margin from their counterparties, including nonfinancial end users.
We welcome the euro area members' decisions in March to strengthen European firewalls as part of broader reform efforts and the availability of central bank swap
lines", noted the communique.
Fed international finance boss Steven Kaman said in prepared remarks to Congress on December 16 that the central bank swap
agreements to bail out Europe "present no exchange rate or interest rate risk to the Fed.
These central bank swap
lines were originally put in place at the beginning of the financial crisis in 2007, and since then they have been used periodically.
The Effectiveness of Central Bank Swap
Agreement as a Crisis-Fighting Tool.
The central bank swap
lines and the CPFF were designed to allow the Federal Reserve to make liquidity available to foreign banks outside the United States and to the commercial paper market, respectively.
New central bank swap
lines have been announced between the Fed, ECB (Eur80B), SNB (Chf40B), BOE (Gbp30B) and BOJ (Jpy10T) in an effort to provide liquidity to US financial institutions.
The deal saw the bank swap
its pounds 400million of loans for a 90 per cent stake in the group, which is to be called Aurora Fashions.
Daily European Central Bank swap
facility activity, September 12-15, 2001 Millions of dollars Amount Date Drawings Repayments outstanding Sept.