Document Type

Working Paper

Publication Date

10-2010

Keywords

OTC, financial crisis, swap, swap dealer, major swap participant, CFTC, Commodity Futures Trading Commission, CFMA, Commodity Futures Modernization Act, Dodd-Frank Wall Street Reform and Consumer Protection Act, CDS, Credit Default Swap, Clearing, DCO, Derivatives Clearing Organization, SEF, Swap Execution Facility, Volker Rule, Lincoln, Speculation

Comments

The paper was prepared for the Roosevelt Institute, October 2010.

Abstract

On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The central goal of the Dodd-Frank Act is to ensure that all standardized derivates products are regulated. The Act requires these trades be fully transparent and backed by adequate capital. The central question for evaluating the success of the Dodd-Frank Act is simple but profound: Has the Dodd-Frank Act made the economy any safer from the threat of another economic meltdown? This paper introduces a number of metrics that can be used to assess the success of the Dodd-Frank Act.

Disciplines

Securities Law

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