This morning I had the pleasure to deliver the keynote address at the Derivatives World Congress organized by American Leaders.
The financial crisis exposed significant weaknesses in the over-the-counter (OTC) derivatives market. In the immediate aftermath of the crisis, the G20 Leaders agreed to improve the integrity of trading, clearing and reporting of OTC derivative transactions. Individual regulators responded—some more quickly than others—to introduce new rules for dealers and clearinghouses. The problem is these reforms were introduced without much coordination among the regulators.
Derivatives traders are unable to execute with foreign counterparties, and clear through offshore … Continue reading