Some are now declaring that derivatives trading will be a less profitable endeavor over the next decade. Those who are not will be attending Derivatives Leaders Forum 2010, “Strategies for Increasing Profits under an Evolving Regulatory Framework” (www.DerivativesLeadersForum.com), July 22nd, New York City.
New York, NY, June 28, 2010 — The sweeping financial overhaul legislation negotiators wrapped up early Friday morning, The Wall Street Journal reports, would constitute the biggest overhaul of U.S. financial regulations since the 1930s. The legislation, broadly, is designed to close the regulatory gaps and end the speculative trading practices that contributed to the 2008 financial market crisis. Derivatives, a major components of the bill, will go through significant changes to be dissected at Golden Networking’s Derivatives Leaders Forum 2010, “Strategies for Increasing Profits under an Evolving Regulatory Framework” (http://www.DerivativesLeadersForum.com), July 22nd, 2010, New York City, sponsored by UltraHighFrequencyTrading.com.
The new bill, continues The Wall Street Journal, “would for the first time extend comprehensive regulation to the over-the-counter derivatives market, including the trading of the products and the companies that sell them. Would require many routine derivatives to be traded on exchanges and routed through clearinghouses. Customized swaps could still be traded over-the-counter, but they would have to be reported to central repositories so regulators could get a broader picture of what’s going on in the market. Would impose new capital, margin, reporting, record-keeping and business conduct rules on firms that deal in derivatives.”
Reuters comments: “Banks avoided drastic curbs on their highly profitable derivatives businesses. Lenders including JPMorgan and Citigroup Inc. will be required to move less than 10 percent of the derivatives in their deposit-taking banks to a broker-dealer division during the next two years, which may require additional capital. Goldman Sachs and Morgan Stanley, which were the two biggest U.S. securities firms before converting to banks in September 2008, won’t be as affected because they kept most of their derivatives in their broker-dealer units.”
“U.S. commercial banks held derivatives with a notional value of $212.8 trillion in the fourth quarter, of which 92 percent were interest-rate or foreign-exchange derivatives, according to the Office of the Comptroller of the Currency. The five U.S. banks with the biggest holdings of derivatives — JPMorgan, Goldman Sachs, Bank of America Corp., Citigroup and Wells Fargo — hold $206.2 trillion, or 97 percent, of that total, the OCC said. Derivatives are contracts whose value is derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in interest rates or weather. They include credit-default swaps, which act like insurance for investors in case a debt issuer can’t repay. Swaps sold by American International Group Inc. that later went sour helped push the insurer to the brink of bankruptcy and triggered a $182 billion federal bailout of the New York-based company during the near collapse of the financial system in 2008.”
Derivatives Leaders Forum 2010 will feature panels on “Assessing the Impact of Proposed Regulatory Changes on the Over-The-Counter Markets”, “The Exchange-Traded Derivatives Changing Landscape in 2010 and Beyond”, “Profit-Generation through High-Frequency Trading Strategies in Derivatives Markets”, and “Exploring Latest Developments in the Market for Credit Default Swaps”. Questions that these panels address include: Will profits really suffer whatever final form of the law emerges? How banks and brokerage firms will adjust to the changes and find ways to work around the new regulations? Which new revenue streams can be thought of to make up for reduced profits? How long will it take for Wall Street to adapt to the new regulations and thrive again?
Derivatives Leaders Forum 2010 is produced by GoldenNetworking.net (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs, investors and diplomats, founded by former McKinsey consultant and Columbia Business School MBA Edgar Perez. Upcoming Golden Networking’s Forums and Business Receptions include:
High-Frequency Trading Happy Hour, (http://www.HFTHappyHour.com), July 13th, New York City
Distressed Investing Experts Forum 2010, “Analyzing and Valuing Distressed Companies, Securities and Real Estate” (http://www.DistressedInvestingExpertsForum.com), September 23rd, New York City
2nd China Leaders Forum, “Challenges and Opportunities for China’s Economic Juggernaut” (http://www.ChinaLeadersForum.com), October 7th, New York City
Latin America Leaders Forum 2010, “Unlikely Oasis of Growth amid the Global Economic Crisis?” (http://www.LatinAmericaLeadersForum.com), October 21st, New York City
2nd Banking Leaders Forum, “Private Banking on the Brink of Transformational Change” (http://www.BankingLeadersForum.com), November 11th, New York City
Global Energy Leaders Forum 2010, “Proposals and Solutions for Today’s Global Energy Challenges” (http://www.GlobalEnergyLeadersForum.com), December 2nd, New York City
2nd Private Equity Leaders Forum, “Setting the Stage for Radical Transformation in 2011 and Beyond” (http://www.PrivateEquityLeadersForum.com), December 9th, New York City
Golden Networking has compiled the insights of top experts and industry practitioners and produced DVD Video Packages for its Leaders Forums, including:
Distressed Investing Leaders Forum 2009 DVD Video Package, “The Most Comprehensive Guide for Any Investor in Distressed Assets”, http://www.DistressedInvestingLeadersForum.com
Distressed Investing Leaders Forum 2010 DVD Video Package, “Extraordinary Opportunities Investors Cannot Afford to Pass”, http://www.DistressedInvestingLeadersForum.com
High-Frequency Trading Experts Forum 2010 DVD Video Package, “Starting and Running a High-Frequency Trading Operation”, http://www.HFTExpertsForum.com
Hedge Funds Leaders Forum 2010 DVD Video Package, “Generating Alpha in Challenging Times”, http://www.HedgeFundsLeadersForum.com
High-Frequency Trading Experts Forum 2010 DVD Video Package, “Innovating and Profiting from High-Frequency Trading in 2010 and Beyond”, http://www.HFTLeadersForum.com
Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to [email protected]. Golden Networking has been frequently featured in the press, including recent articles in The New York Times, “Golden Networking Helps Job Seekers Make Overseas Connections” (http://www.nytimes.com/2009/11/07/nyregion/07network.html), Los Angeles Times, “Speed-addicted traders dominate today’s stock market” (http://articles.latimes.com/2010/may/16/business/la-fi-new-exchanges-20100516), Reuters, “Revamp looms as trading experts huddle at SEC” (http://www.reuters.com/article/idUSTRE6504U820100601) and Columbia Business School’s Hermes Alumni Magazine, “10 Under 10” (http://www7.gsb.columbia.edu/alumni/news/ten-under-ten).
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Contact:
Edgar Perez
Founder
Golden Networking
New York, NY
516-761-4712
[email protected]
http://www.goldennetworking.net
