We investigate regulatory arbitrage during the G20's global derivatives market reform. Using hand-collected data on staggered reform progress, we find that banks shift their trading towards less regulated jurisdictions. The result is driven by agenda items – such as the promotion of central...

The global crisis of 2008 associated with the failure of Lehman Brothers revealed the fragility of the financial system. In its aftermath, policy makers created many new rules to address the perceived causes of the crisis and to enhance financial stability. Nearly all of these rules have now...