Columbia Law School
Sky Blog
Clearing
The Dodd-Frank Trade Mandate: Evidence Following its Implementation
In the aftermath of the financial crisis of 2008-09 there was a widespread perception that the opacity of derivatives exposures held by major financial institutions contributed to the build-up of systemic risk. As a result, the G-20 leaders convened in …
Legal Perspectives on Client Clearing
In the immediate aftermath of the global financial crisis, the G20 quickly turned its attention to reforming the vast ‘over-the-counter’ (OTC) derivatives markets. The statement issued after the G20’s September 2009 meeting included the declaration that ‘[a]ll standardized OTC derivatives …
Considering the Transformation of the OTC Derivatives Market, 1984-2015
In my recent paper, “Private and Public Controls in the Over-the-Counter Derivatives Market, 1984-2015”, I study how private and public controls operated jointly in OTC derivatives over the period. A main conclusion is that private incentives especially shaped …
Collateral Damage: Adopting the LSOC Model and Insurance in the US Futures Markets
It is confounding that futures customers currently receive a lower level of protection than cleared swaps customers under US law. This legal phenomenon has occurred because the law in the US derivatives markets developed in a piecemeal fashion over several …
House Seeks to Harmonize Clearing and Margin Exemptions
The House is continuing Congress’ piecemeal rollback of the Dodd-Frank Act, a theme Alexander Sand and I explore in our recent article, Cutting Back: Revisions to Dodd-Frank Derivatives Rules.[1] Although the House has targeted a number of Dodd-Frank …
A Shift in Proposed Margin Regulation May Unleash Restraints on Banks’ Activities
A nuance in margin rules proposed by the CFTC and other federal financial regulators threatens to undermine a carefully struck balance in Dodd-Frank. As background, Title VII of Dodd-Frank subjected U.S. derivatives markets to a host of new regulations. Broadly …
Ensuring the Promise of a Centrally Cleared, Global Swaps Market: Next Steps
These remarks were made by Commissioner Mark P. Wetjen before the Futures Industry Association Asia Derivatives Conference
Thank you for that kind introduction, and my thanks as well to the Futures Industry Association for having me here to speak at …