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Because Wall Street has succeeded in keeping derivative trades unregulated, no one has an overview of the quality of the derivates that now hang over the world economy.
And OTC derivative trades are usually big.
It calls for certain derivative trades, though not all, to be handled through clearinghouses.
That is why it is so essential to move derivative trades onto fully transparent exchanges.
"The top seven banks control 97percentt of all the derivative trades in the United States," he said.
Such reforms would include curbing the use of leverage and of opaque derivative trades to boost gains.
Similar(10)
It would force derivative trading out into the open.
New products such as derivative trading have been introduced.
The whole area of derivative trading is fraught with uncertainty because of the difficulty of valuation".
"I would put derivative trading in a subsidiary and tax it at a higher rate.
Derivative trading is going to be regulated.
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