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Has the crisis made derivatives fraud worse?

  • While fraud will occur in any form of human activity, we should remember that, unlike our brethren in the financial sector, the regulated derivatives markets have required zero (-$0-) TARP money. This "show me the money" policy (or else you're out of here) probably reduces the risk of fraud as well.
    05 Feb 2010

Poll

What is the main reason volumes down on derivatives exchanges this year?

Banks are cutting back on trading ahead of Volcker Rule
13%
Financial institutions are more risk averse
48%
Risk is too one directional
2%
Few new contracts are being launched
4%
Low interest rate environment
10%
Uncertainty about regulatory reform
24%