“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.