Bring Building Codes to OTC Markets in Derivatives.

The article discusses a proposed comprehensive regulatory framework for over-the -counter (OTC) derivatives. It describes how certain financial institutions dealing with unregulated derivatives nearly collapsed. The need to achieve both real-time post-trade transparency and benefits of some pre-trade transparencies in OTC derivatives is stressed. The proposed reforms include regulation of derivatives dealers, trading of standard OTC derivatives on exchanges and other trading platforms and open membership-clearing houses.