US Treasury puts derivatives trading in the spotlight

New Angles

The US Treasury plans to investigate a number of perceived dangers in the financial system, including counterparty credit risk concentrations among US insurers and the burgeoning growth of the unregulated hedge fund and over-the-counter derivatives markets. The development comes at a time when dealers are scrambling to assuage regulator concerns about the backlog in trade confirmations in their derivatives trading books.

According to Randal Quarles, undersecretary for domestic finance at the