Powell Says Regulators Fixing Big Flaws in Derivatives Market
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Federal Reserve Governor Jerome Powell said regulators are attempting to fix the “significant flaws” in the over-the-counter derivatives market that were revealed by the financial crisis.
“Increased central clearing and margins for noncleared derivatives are foundational elements of the program” which “can help create a system in which the OTC derivatives-market infrastructure acts as a pillar of strength in the next crisis,” Powell said today in the text of remarks in New York.