Sept. 8 (From Bloomberg) — U.S. regulators will need budget increases “orders-of-magnitude larger” than current levels to police trades in the $592 trillion over-the-counter derivatives market, according to Tabb Group analyst Kevin McPartland.
Congressional legislation now being considered mandates that repositories be established to record and monitor every swap trade entered into between banks, hedge funds and other users of the private market. The Commodity Futures Trading Commission, the Securities and Exchange Commission and the Federal Reserve are possible regulators.
The world’s largest banks will spend about $4.7 billion on risk-management technology …