Capital Markets Advisors

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August 7th, 2012

Dodd Frank Act legislation with associated regulatory and compliance changes such as the Volcker Rule, are final regulation that are still in the box

In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (also referred to as Dodd-Frank, “DFA”) was signed into law. This legislation potentially will dramatically impact the financial services and banking industries, as regulators are granted to review and monitor the products and activities of financial institutions, with power now to enforce. DFA has implications throughout the financial industry as it touches upon the financial firms’ organization, products and business processes within financial institutions.

Meanwhile, associated regulatory and compliance final regulations such as the Volcker Rule, which are yet to be completely determined and finalized, multi-lateral regulatory frameworks such as Basel Accords generations II and III with associated upgrade in liquidity requirements’ attendant collateral management and Over-the-Counter (“OTC”) derivatives clearing and management of these exposures, each often with legacy systems transformation, all have produced operating environments needing the consulting of Capital Markets Advisors (“CMA”).

Issues. Due to the 2008 financial crisis including the consumer credit crisis along with several high profile compliance breakdowns and increased emphasis on consumer protection, on financial institutions’ customer practices and regulatory compliance performance, like never before on these matters is there more focus by the federal and state regulatory agencies, investors, legislators and the general public. As it were, financial institutions now are facing new and challenging regulatory requirements, under DFA for example that will alter their operations and business unit structures as market makers. As a result, this will impact on the trading of OTC derivatives contracts. Thus, a significant component for IT executives in 2012 and going forward will include Dodd-Frank compliance in many technology areas.

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