In New Rules to Shine Light on Derivatives, Regulators Also Allow Exemptions.
Source: nyt
Regulators on Tuesday took a major step toward reining in risky Wall Street trading, approving new rules aimed at preventing a repeat of the financial crisis.
The rules, stemming from the Dodd-Frank financial regulatory law, will give regulators more control over the $700 trillion derivatives industry, an opaque business at the center of the crisis. While regulators have spent more than two years retooling the sector, the latest package of reforms laid crucial building blocks for the remaining aspects of the Wall Street overhaul.
“Light will begin to shine on the markets for the first time,” Gary Gensler, chairman of the Commodity Futures Trading Commission, which approved the rules, said at a public meeting. “This is a very significant day for the American public.”
But another member of the agency questioned whether last-minute changes undermined the rule, allowing risk to seep back into the system. Bart Chilton, a Democratic commissioner who cast the lone vote against the plan, raised concerns that the fine print created loopholes wide enough for Wall Street to exploit.
Read more: http://dealbook.nytimes.com/2012/07/10/in-new-rules-to-shine-light-on-derivatives-regulators-also-allow-exemptions/?hp
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