On April 29th, the Treasury Department proposed that foreign exchange (forex) swaps be exempt from Dodd-Frank Regulation. If they were to come under regulation, forex swaps would be required to be traded transparently on open trading platforms and cleared via clearinghouses. This would necessarily drive up operation costs, some say prohibitively. Consequently, the Treasury Department has argued that “[c]entral clearing requirements will strengthen the rest of the derivatives market, but could actually jeopardize practices in the foreign exchange swaps and forwards market that help limit risk and ensure that it ... (full story)