Treasury proposes limiting nonstandardized OTC derivatives

08/18/2009 | Financial Times (tiered subscription model)

The Treasury's plan to regulate the over-the-counter derivatives market includes forcing standardized derivatives to be centrally cleared. To succeed, the Treasury needs to make creation of nonstandardized derivatives less attractive through increased costs and other measures. "Through higher capital requirements and higher margin requirements for nonstandardized derivatives, the legislation will encourage substantially greater use of standardized derivatives and thereby will facilitate substantial migration of OTC derivatives onto central clearinghouses and exchanges," the Treasury said.

View Full Article in:

Financial Times (tiered subscription model)

Published in Brief: