IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

21st century finance cannot do without a sound regulation of the OTC derivatives markets

Listed author(s):
  • Jouyet, JP.
Registered author(s):

    OTC derivatives were quite rightly signaled out for their role in triggering and propagating the financial crisis. Admittedly, they can give rise to risk, regulatory arbitrage, complexity, and even financial system instability. However, they also contribute to the fi nancing of the economy and to the smooth functioning of markets. Therefore, in order to retain the benefi ts and mitigate the risks, these products must be regulated appropriately. This regulation must not focus solely on prudential issues. The market regulator must play a role in establishing a renewed regulatory framework for these markets. The latter must be more transparent and their very organisation must evolve. The Committee of European Securities Regulators (CESR) has proposed a roadmap based on the three-fold approach of standardisation, clearing, and creation and registration of the corresponding market infrastructures. In addition, an even more ambitious overhaul should be considered of the national and European regulatory frameworks whose contours were designed before the explosion in derivatives trading volumes took place. They must now incorporate this new dimension of modern markets.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Banque de France in its journal Financial stability review.

    Volume (Year): (2010)
    Issue (Month): 14 (July)
    Pages: 81-92

    in new window

    Handle: RePEc:bfr:fisrev:2010:14:10
    Contact details of provider: Postal:
    Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS

    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bfr:fisrev:2010:14:10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael brassart)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.