Dodd-Frank Act: Why OTC Derivatives were Addressed
Interactive

Dodd-Frank Act: Why OTC Derivatives were Addressed

Intuition Publishing
Updated Sep 25, 2020

The general perception is that over-the-counter derivatives were a major contributor to the scale of the global financial crisis. Here we outline the motivation for the Dodd-Frank Act's enhanced regulation of OTC derivatives. We look at how these products traded before the Act, focusing in particular on the management of counterparty credit risk.