What is a CFTC swap?
What is a CFTC swap?
The CFTC adopted anti-evasion rules that define as swaps those transactions that are willfully structured to evade the requirements of the Dodd-Frank Act.
What swaps does the CFTC regulate?
It includes, for example, interest rate swaps, commodity swaps, currency swaps, equity swaps and credit default swaps.
What are swap dealers on the COT report?
Swap Dealers is category of Comex traders specified in the disaggregated version of the Commitments of Traders Report (CoT report) published by the Commodity Futures Trading Commission (CFTC), which represents entities that deal primarily in swaps for a commodity and use the futures markets to manage or hedge the risk …
How do you read CFTC reports?
CFTC
- Go to www.CFTC.gov.
- Select Market Reports.
- Select Commitments of Traders.
- The next page will allow you to view the COT Reports with choices to filter the data by the following, as well as choose whether you would like to view the data in a long or short format:
What are swap trades?
A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.
What is a Dodd Frank swap?
The Dodd-Frank Act divides regulatory authority over swap agreements between the CFTC and SEC (though the prudential regulators, such as the Federal Reserve Board, also have an important role in setting capital and margin for swap entities that are banks).
What is a Dodd-Frank swap?
Where are swaps executed?
Swap execution facilities (SEFs) are electronic matching platforms that bring together buyers and sellers of swaps contracts, much like any other electronic exchange. These are regulated venues that rely on a request-for-quote mechanism.
What are swap dealers?
A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps …
What is commercial and non-commercial in COT report?
These players could be categorized into three basic groups: Commercial traders (Hedgers) Non-commercial traders (Large Speculators) Retail traders (Small Speculators)
How do you read a cot graph?
If traders are net short, the COT graph will show a negative position and if they are net long the COT graph will show a positive position. The COT charts also illustrates the rate of change within those long or short balances.
What is CFTC report?
The Commodity Futures Trading Commission (Commission or CFTC) publishes the Commitments of Traders (COT) reports to help the public understand market dynamics.