Regulations Actually Helping OTC Derivatives Markets? Yes, Says One Analyst

As the current deregulatory environment rages in Washington DC, post-crisis over-the-counter derivatives regulation stands as a rare epitome of government effectiveness, a new report claims. In the wake of financial crisis, the OTC derivatives markets are “alive and well because of, not in spite of, a slew of post-crisis legislation and regulation put in place over the past decade,” Greenwich Associates Head of Research for Market Structure and Technology Kevin McPartland wrote. While the system isn’t perfect, with a strong foundation in place it can be modified to improve effectiveness, he says.

When speaking with reporters Thursday, Gary Cohn, director of the National Economic Council and chief economic advisor to President Trump, said that tax reform can pay...