any degree of reliability, most notably the most practically important form of manipulation.
derivatives-related proposals will impede, rather than facilitate, the ecient evolution of deriva- tives markets.
e bulk of the derivatives-related provisions of ACESA reect an implicit assumption that deriv- atives markets are the world’s largest market fail- ure. Yet its authors and advocates have failed to identify just what the sources of those market fail- ures are. What’s more, a back-to-basics evalua- tion of the structure of derivatives markets shows that their current structure, though not perfect, strongly reects fundamental economic consider- ations in a discriminating way. Consequently, the
It is especially telling that in its zeal to “reform” derivatives markets, Congress can do nothing but resurrect a regulatory scheme rst devised almost 90 years ago. is regulatory framework proved woefully inadequate beginning in the 1980s, and its inadequacies are even more pronounced today. us, Congress has made it clear that it wants to regulate derivatives in the worst way, and has achieved its desire.
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