Financial institutions should take action now to prepare for new OTC regulations.
The regulatory response to the
financial crisis will result in significant and lasting changes
to the way OTC derivatives are traded and cleared. In these
uncertain times, financial institutions must take action now to
ensure they stay competitive as a new clearing landscape takes
shape.Paul Foulkes and Oliver
Partners examine the
regulatory drivers of change, their likely effect and identify
ways financial institutions can prepare for the future.
Complexity and lack of visibility
in the OTC derivatives market was a major contributor to the
financial crisis. Institutions struggled to understand their
exposure to trading counterparties, while regulators failed to
identify the systemic risks inherent in OTC trading. The
aftermath has been a wave of regulation in the financial
markets aimed at better managing risk and increasing
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