The regulatory response to the financial crisis will result in significant and lasting changes to the way OTC derivatives are traded and cleared. In these uncertain times, financial institutions must take action now to ensure they stay competitive as a new clearing landscape takes shape.
Complexity and lack of visibility in the OTC derivatives market was a major contributor to the financial crisis. Institutions struggled to understand their exposure to trading counterparties, while regulators failed to identify the systemic risks inherent in OTC trading. The aftermath has been a wave of regulation in the financial markets aimed at better managing risk and increasing transparency.
Read our in-depth review of the regulatory drivers of change, and their impact on financial institutions, in this month’s Futures and Options World magazine.
