Gary Gensler, chairman of the Commodity Futures Trading Commission, notes that the financial crisis has forced regulators and market participants to deal with the issue that some financial institutions have become "too interconnected to fail." Gensler writes that the situation is a result of the lack of regulation of the over-the-counter derivatives market. The financial-reform bill includes a measure that would force OTC derivatives to be routed through a central clearinghouse. "This will greatly reduce risk, interconnectedness and the need for future bailouts," Gensler writes.
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