If you think the US derivatives clampdown is mainly on the over-the-counter market, you haven’t been reading your Dodd-Frank carefully enough. Philip McBride Johnson highlights five threats to futures and options markets in the Act, and counting…
The US Congress has finally passed the Dodd-Frank Act, an elaborate (and sometimes incoherent) response to the meltdown in financial markets during 2008 and 2009, which required a federal rescue package running into hundreds of billions of dollars.
The new law readily acknowledges that the bulk of this emergency occurred in recesses of the financial system that had been liberated from pesky regulation because they were run by the best and the brightest among us.
The markets and professionals that remained under regulation required exactly zip from the state. So, the latter are safe from the clampdown, right, since they did not participate in the cataclysm?
Guess again.
First, there is a...