American Banker: “Dodd-Frank Missed an Opportunity to Truly Reform Derivatives”

“Title VII of the Dodd Frank Act, much of which will take effect next month, requires over-the-counter derivatives to trade through central counterparties. There are many benefits to such centralization. However, Title VII chose complexity over simplicity through its failure to create uniform rules for exchange-traded and OTC derivatives, a single regulator for all derivatives, or uniform rules for all participants. This represents an unfortunate missed opportunity,” writes Pace professor Aron Gottesman.

“Title VII of the Dodd Frank Act, much of which will take effect next month, requires over-the-counter derivatives to trade through central counterparties. There are many benefits to such centralization. However, Title VII chose complexity over simplicity through its failure to create uniform rules for exchange-traded and OTC derivatives, a single regulator for all derivatives, or uniform rules for all participants. This represents an unfortunate missed opportunity,” writes¬†Aron Gottesman, a professor of finance and chair of the Department of Finance and Economics at Pace University’s Lubin School of Business in New York.

Read his op-ed on the American Banker blog BankThink.


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