Federal Reserve Bank of Cleveland
Reforming the over-the-counter derivatives market: what’s to be gained?
While derivative financial instruments have made the hedging and exchange of risk more efficient, the recent crisis showed that they also pose a substantial threat to financial stability in times of systemic turmoil. Underlying much of this threat is the lack of transparent reporting in the over-the-counter market for these instruments. This Commentary discusses the advantages of one solution to the transparency proble: moving the settlement or trading of derivatives to exchanges or clearinghouses.
Cite this item
Kent Cherny & Ben R. Craig, "Reforming the over-the-counter derivatives market: what’s to be gained?"
, Federal Reserve Bank of Cleveland, Economic Commentary, issue Jul, 2010.
Keywords: Derivative securities ; Financial market regulatory reform ; Over-the-counter markets
This item with handle RePEc:fip:fedcec:y:2010:i:jul7:n:2010-6
is also listed on EconPapers
For corrections, contact 4D Library ()