June 10, 2014
We submitted a comment letter to the SEC regarding its request for comments on the its proposed clearing agency rules. As numerous commentators have asserted, swaps and other exotic OTC derivatives contributed to the recent financial crisis. The Dodd Frank Act has sought to shed light on these opaque markets, by requiring derivatives to be cleared through registered agencies. In some ways the risk associated with derivatives has not gone away - it has simply shifted to clearing agencies. Thus, it is vital that the Commission not only promulgate strong regulations covering such agencies, but also enforce such regulations in a vigorous manner.
The letter and the accompanying press release can be found below: