VII Strengthening the Stability of Modern Banking and OTC Derivatives Markets
Author:
Mr. Burkhard Drees
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,
Mr. Garry J. Schinasi
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Mr. Charles Frederick Kramer
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Mr. R. S Craig
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Language:
English
Print Publication Date:
09 Jan 2001
Keywords:
OP; market; OTC derivatives market; derivative instrument; derivative; University Officers' Training Corps; market dynamics; OTC derivatives business; market discipline; OTC derivatives exposure; Legal support in revenue administration; Over-the-counter markets; Derivative markets; Public sector; Credit risk; Global

Abstract

Market participants and officials acknowledge there are problems, if not instabilities, and weaknesses in OTC derivatives markets, and proposals and initiatives have been advanced. Some progress has already been made, and the lessons of recent experience are likely to motivate further actions. However, the available evidence suggests that many recognized problems have yet to be adequately addressed. Insufficient progress has been made in implementing reforms in risk management, including counterparty, liquidity, and operational risks.103 Relatively less attention has been focused on removing legal and regulatory uncertainty. Given the limited progress to date, it is essential to implement changes to reduce market instability.

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Cover Modern Banking and OTC Derivatives Markets
Modern Banking and OTC Derivatives Markets
The Transformation of Global Finance and its Implications for Systemic Risk
ISBN:
9781557759993
ISSN:
0251-6365
Publication Date:
09 Jan 2001
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557759993.084
Pages:
77

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