Capital and margin requirements are central to the prudential regulation of financial institutions active in derivatives markets as well as to the internal risk-management processes of such firms. Title VII requires that the CFTC, the SEC, and prudential regulators adopt capital and margin requirements for the noncleared swap activity of swap dealers and major swap participants.
With greater liberalization of interest rates and gradual strengthening of transmission mechanism of monetary policy, more attention was paid to management of shortterm interest rates, but within the framework of monetary aggregate targeting with inflation as the ultimate target, broad money as the intermediate target and base money as the operational target.