Results tagged “OTC derivatives” from Regulating Wall Street

Short selling and OTC derivatives policy options

A column by Carlos Tavares argues that now is the hour of the regulator in the financial sector. He references two past pieces by Regulating Wall Street contributing authors. The first is Viral Acharya and Nobel Laureate Robert Engle's piece on improving transparency in bond and derivatives markets, and the second is Viral Acharya, Thomas Cooley, Matthew Richardson, Richard Sylla and Ingo Walter's critical assessment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Read the full column on

End users such as Lufthansa, Rolls Royce, Caterpillar and the like are being offered exemption from clearing requirements that dealers are likely to face in OTC derivatives. The European regulators appear to be moving in this direction, but only subject to some important checks: audit/accounting reports to detect end users are hedging or speculating, or restrictions on size of transactions.

See the FT article.

These checks to ensure that OTC end-user exemption is not abused mirror closely the proposals made by the Stern Working Group on the financial crisis in their assessment of the end-user exemption in discussion of House and Senate Bills:


The Dodd-Frank Act, signed into law in July 2010, represented the most significant and controversial overhaul of the U.S. financial regulatory system since the Great Depression. Forty NYU Stern faculty, including editors Viral V. Acharya, Thomas F. Cooley, Matthew P. Richardson, and Ingo Walter, provide a definitive analysis of the Act, expose key flaws and propose solutions to inform the rules’ adoption by regulators, in a new book, Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (Wiley, November 2010).

About Restoring Financial Stability

Previously, many of these faculty developed 18 independent policy papers offering market-focused solutions to the financial crisis, which were published in a book, Restoring Financial Stability: How to Repair a Failed System (Wiley, March 2009).

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