Weaknesses in the US Regulation of Derivatives

Derivative

President Obama's new proposal aimed to regulate derivatives has some major flaws.  The proposal stops short of creating a fully transparent market. Derivatives are financial products that supposed to help investors manage risks, like the possibility of default or of interest-rate swings.    They are virtually hidden from investors, analysts and regulators. They do not trade openly on public exchanges and have very few other … [Read more...]