OTC market must escape dealers’ clutches, says Gensler
The OTC derivatives market must move away from being dealer-dominated towards a transparent, centralised structure, Commodity Futures Trading Commission chairman Gary Gensler has said. “The over the counter derivatives markets began in 1981 and remain to this day largely unregulated,” he told the Atlantic Council yesterday evening (January 12).
“We would not tolerate it if other markets operated similarly to over the counter derivatives, where dealers are the only ones with much of the relevant information. It would be like buying an apple from the supermarket when the price of the apple is kept private. How would you know if you got a fair price if you didn’t know how much the last person paid for the same apple?”
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