Looking back: Regulators try to slow down OTC juggernaut

Today, regulation is a fact of life for OTC commodity derivatives traders. But in April 1994, it was somewhat novel, as Energy Risk reported at the time

The over-the-counter commodity derivatives markets have been spared from regulation because of the enormous momentum generated through their rapid growth. "The energy derivatives market has just been running too hard and too fast, and I don't think the regulators have had a chance to catch up yet," says one New York-based energy trader.

But now, regulators are alert to the dangers of uncontrolled growth, and particularly systemic risk – the fear that derivatives can magnify adverse price