Comment Text:
Human Capital Trading--- Section 619 of the Dodd-Frank Act restricts banking entities from entering into "proprietary trading", subject to certain exemptions. The term "proprietary trading", in turn, is defined in the statute as "engaging as principal for the [banking entity's] trading account". As such, the concept of the "trading account" is fundamental to determining whether or not an activity is considered "proprietary trading" and therefore restricted by Section 619 of the Dodd-Frank Act.
The regulation of these swap arrangements is complicated by the nature of swaps, which are characterized by ongoing payments, deliveries or other obligations between the parties throughout their long duration. This may result in regulation of the swaps relationship over the course of many years, rather than primarily at the time of the execution of the transaction as with the purchase or sale of cash instruments. fdcic.gov previous comment
