And remember, kids, the house always wins!
On Aug. 20, the Commodity Futures Trading Commission and the Securities and Exchange Commission sponsored an open forum on derivatives regulation. Industry representatives, trade groups, investor advocates and regulators discussed how to put into practice Congress’s desire for a more closely supervised market in derivatives.
Because the most potentially nuclear forms of derivatives are privately arranged and loosely monitored, two clear goals of the legislation are greater price transparency and the opening of transactions to more market participants.
But not everyone wants these aims to be met. And early signs indicate that the big firms currently in control of the derivatives market view the rules-writing process as an opportunity to maintain the status quo in one of their most lucrative lines of business — or win back what they feel they lost amid the legislative wrangling earlier this year.
The question is this: Will regulators give Wall Street’s big dealers what they want in a second bite of the apple?