Derivatives and Foreign Exchange Swaps Get to Hide in The Shade Like Criminal Activity

A major loss for transparency and the monitoring of risky derivatives….

“WASHINGTON (Reuters) – In a big win for business, the Treasury proposed on Friday to exempt commonly used foreign exchange swaps and forwards from new rules that have tightened oversight of other derivatives.

The Treasury Department said that forcing these derivatives through clearinghouses and onto exchanges was not necessary because existing procedures in the foreign exchange market mitigate risk and ensure stability.

Any disruptions to this market “could have serious negative economic consequences,” the department said.”

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