Isda AGM: US regulator identifies six weaknesses in OTC market

Theo Lubke, senior vice-president at the Federal Reserve Bank of New York, identified six main problem areas in the over-the-counter derivatives market during a panel discussion on public policy at the International Swaps and Derivatives Association's annual general meeting in Beijing on April 22.

While praising the derivatives industry for the strides it has made in improving operations infrastructure - specifically, the reduction in backlogs and improvements in novations processing - Lubke said there is still an over-reliance on manual processes. "There are still a lot of improvements needed to automate the market in a strong and efficient manner," he remarked.

The second area of concern for regulators, Lubke added, was what he referred to as "structural design weaknesses in how

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