In the wake of the recent financial crisis, over-the-counter (OTC) derivatives have been blamed for increasing systemic … risk. Although OTC derivatives were not a central cause of the crisis, the complexity and limited transparency of the … market reinforced the potential for excessive risk-taking, as regulators did not have a clear view into how OTC derivatives …

Commission (SEC) as the primary regulators of the OTC derivatives swap market. The Act provides a very broad definition of swaps … to include most OTC derivatives transactions, and it grants the CFTC regulatory jurisdiction over them with the exception … clearing, trade execution, and reporting requirements for OTC derivatives contracts modeled after similar regulatory …

system. One concept, managing the risk of default in securities or financial derivatives markets through central … financial transactions. The author offers a new look at what these institutions could achieve in over-the-counter derivatives …