Swaps Regulation

Swaps regulation refers to rules that oversee certain financial agreements called swaps, which are contracts used to manage or speculate on changes in market variables like interest rates or currencies. These regulations aim to increase transparency, reduce systemic risk, and protect the financial system by requiring firms to report swap transactions, clearing them through central clearinghouses, and following specific risk management standards. This oversight helps prevent risky or opaque practices, promotes fair trading, and ensures that all parties involved understand and manage potential risks effectively.