The risk of OTC derivatives

In recognition of the attention to use of OTC derivatives by financial operators financial and economic benefits of derivatives products, (as opposed to non-financial operators) to reduce their the Group of Twenty (G20), under the auspices of the risks. [...] In November 2014, G20 leaders met in Australia drawn attention to the detrimental effects of the United and confirmed that a few gaps need to be closed in the States and the European Union (EU) to coordinate OTC financial system, in particular in the OTC derivatives reform, this overlooks an important aspect of the post- markets, and that reforms of OTC derivatives need rapid crisis process: the e [...] The the potential risk involved, since domino effects have the improper use of derivatives, the high concentration potential to spread through the deep interconnectedness and deep interconnections in the market, as well as the of the global financial system. [...] According to Klaus Deutsch growth under the new regulatory system depends on the (2014, 1), “Interests, institutions and ideas are the main degree of coordination among financial systems and their causes of this divergence.” This, together with the lack of ability to recognize and close the regulatory gaps seen in coordination on the role of credit rating agencies after the the recent past. [...] The focus of the majority of observers the post-crisis regulatory effort, an important feature and scholars has been on the inconsistent implementation has been a lack of transatlantic coordination between of financial standards for OTC derivative reform after the United States and the European Union.