ACT background information on the proposals for regulation of OTC derivatives | The Association of Corporate Treasurers

ACT background information on the proposals for regulation of OTC derivatives

The regulatory authorities in the US and Europe are concerned about the systemic risks arising from the build up of positions in OTC derivatives. They are worried that the huge volumes of outstandings and the lack of transparency could mean that in the event of the collapse of a large market participant there could be catastrophic chain of defaults and the withdrawal of liquidity from the markets.

Scroll to top