Journal Article
Reforming the over-the-counter derivatives market: what’s to be gained?
Abstract: 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.
Keywords: Derivative securities; Over-the-counter markets; Financial market regulatory reform;
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https://www.clevelandfed.org/publications/economic-commentary/2010/ec-201006-reforming-the-over-the-counter-derivatives-market-whats-to-be-gained
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2010
Issue: Jul
Order Number: 6