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Otc Derivatives Trading Under The Financial Reform Bill: Is It Tough Enough?, Willa E. Gibson
Otc Derivatives Trading Under The Financial Reform Bill: Is It Tough Enough?, Willa E. Gibson
Willa E Gibson
This paper discusses the regulatory framework devised by Congress to govern trading in OTC derivatives products with a goal toward assessing the efficiency of the legislation to prevent systemic loss in the financial markets from derivatives trading. Both the U.S. House of Representatives and the U.S. Senate have drafted financial reform legislation prompted by the financial market failings the country experienced in 2008. Both versions provide for comprehensive regulation of the OTC derivatives products, which were used extensively by those financial institutions that lost millions of dollars from investments in mortgage securities to insure against subprime mortgage defaults. This paper …