How Do Regulatory Frameworks like Dodd-Frank or MiFID II Impact the Mandatory Clearing of OTC Derivatives? ▴ Learn

How Do Regulatory Frameworks like Dodd-Frank or MiFID II Impact the Mandatory Clearing of OTC Derivatives?

Both Dodd-Frank (US) and MiFID II (EU) mandate that certain standardized Over-The-Counter (OTC) derivatives must be cleared through a Central Clearing Counterparty (CCP). This aims to reduce systemic risk by moving a significant portion of the bilateral OTC market into the safer, collateralized CCP framework.

The regulations increase transparency and standardization in the derivatives market.

What Specific Regulations, like the Dodd-Frank Act, Were Introduced to Address Issues in the CDS Market?

What Legal Framework Governs the Novation Process in Major Derivatives Markets?

What Measures Are in Place to Prevent Systemic Failure after a Large Default?

What Regulatory Hurdles Prevent the Establishment of a Formal Crypto CCP?