Derivatives and Treasury Management

Derivatives and Treasury Management

It must have seemed like a no-brainer in 2009. Leaders of the G-20 vowed to get control over the huge and opaque world of derivatives blamed by many for precipitating the financial crisis that had engulfed them. The most common sorts of derivatives (contracts that take their value from the performance of an underlying asset) were to be traded on recognised platforms, cleared through central counterparty systems with high collateral requirements and reported to trade depositories. The markets would be safer, banking supervisors would know where everyone stood, and taxpayers could sleep quietly at night, knowing they were unlikely to have to bail out the world�s financial system again. The Economist.

Discuss the main regulations that have bene introduced in the derivative markets since 2009 and explain whether you think these regulations have achieved their aims.