The efficiency and diversity of the derivative markets are in danger, argues Anthony Belchambers – in danger of being damaged by unrealistic timetables and over-regulation, as public and political opinion has swung sharply against the financial world. Inspired by the Principles of Better Regulation, the Futures and Options Association’s CEO suggests five Principles of Better Repair, which governments should follow to restore public confidence and better regulate markets without crushing them.
The havoc wrought by the financial crisis has left a damaged landscape. Investment banks, brokerages and other intermediaries are all striving to control costs, rebuild businesses and restore balance sheets.
But in the relentless, though understandable, drive for regulatory repair, there is a real risk that too little regard will be paid to the equally urgent need for economic and commercial repair.
On the regulators’ side, the De Larosière Report, the Turner Review and US treasury secretary Tim Geithner’s...