Swap Dealer

Swap Dealer
An individual who acts as the counterparty in a swap agreement for a fee called a spread. Swap dealers are the market makers for the swap market. The spread represents the difference between the wholesale price for trades and the retail price. Because swap arrangements aren't actively traded, swap dealers allow brokers to standardize swap contracts to some extent.

Historically, swaps have been traded in the over-the-counter market, mainly between firms and financial institutions, in largely unregulated transactions. In 2011, the SEC proposed requiring security-based swap dealers and participants to register with the commission, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The swap market would be overseen by the SEC and the CFTC. Swap dealers would have to change their business models and more trades would occur via exchange-like mechanisms. The Wall Street Journal stated that the proposed regulations would increase competition among swap dealers and decrease their profits, increase market liquidity and make trading more efficient for customers.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… …   Wikipedia

  • Fixed-For-Floating Swap — An advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate. To understand how each party would benefit from this type of arrangement, consider a situation where… …   Investment dictionary

  • Macroeconomic Swap — A type of derivative designed to help companies whose revenues are closely correlated with business cycles to reduce their business cycle risk. In a macroeconomic swap, also called a macro swap, a variable stream of payments based on a… …   Investment dictionary

  • Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity …   Wikipedia

  • HSV Dealer Team — V8 Supercar Team Short name = Toll HSV Dealer Team Manufacturer = Holden Principal = John Kelly, Margaret Kelly Manager = Erik Pender Drivers = 15. Rick Kelly 16. Paul Dumbrell Chassis = VE Commodore Debut = 2001 Drivers champ = 2 Wins = 11 Poles …   Wikipedia

  • dark swap — n. To trade unused capacity (such as bandwidth on a fiber optic cable) for the unused capacity owned by another company and then report the new capacity as an asset. Example Citation: Then Lerach threw out more sinister phrases dark swaps,… …   New words

  • Dodd–Frank Wall Street Reform and Consumer Protection Act — Titre An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers from… …   Wikipédia en Français

  • Commitment of Traders Report — Der Commitment of Traders Report wird im Original als Commitments of Traders (CoT) bezeichnet. Hierbei handelt es sich um einen regelmäßig veröffentlichten Bericht der Commodity Futures Trading Commission (CFTC), welche als Regulierungsstelle der …   Deutsch Wikipedia

  • Mismatch Risk — 1) A category of risk that refers to the possibility that a swap dealer will be unable to find a suitable counterparty for a swap transaction for which it is acting as an intermediary. 2) The risk that an investor has chosen investments that are… …   Investment dictionary

  • Commodity Futures Modernization Act of 2000 — The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over the counter derivatives. It was signed into law on December 21, 2000 by… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”