Tuesday, August 31, 2010

Frank-Dodd: public markets for derivatives

So, see here for a modern explanation of why OTC (over the counter) derivatives are a bad idea (tm).

It is taking for ever to unwind the mess of derivative contracts within Lehman (remember?). So FD regulation does offer a standardized platform that is measured.

That would clearly enable a quick unwind of positions in the case of bankruptcy. And that is a good thing.

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