COMPANIES The world’s biggest banks will continue to trade over-the-counter derivatives in much the same way as they did before the financial crisis, in spite of the recently enacted legislation on US financial reform, the CME Group said on Thursday.
The opacity of OTC derivatives such as credit default swaps – which offer insurance against banks, companies and governments defaulting on debt – was widely blamed for aggravating the financial crisis. An important impetus for financial regulatory reform was to bring transparency to the OTC markets.
