President Obama’s administration yesterday (August 11) sent its proposal for the regulatory reform of the over-the-counter derivatives market to Congress, as the plan unveiled by US President in July, approaches law.
The proposal would require all OTC derivatives to be cleared via a central counterparty while all “standardised” OTC derivatives would be required to be traded via an exchange.
The draft plan also demands that those contracts which are executed bilaterally would be subject to higher capital and margin requirements.
US President Obama placed regulatory reform of the OTC markets at the heart of his administration’s response...