What Is the Purpose of the Dodd-Frank Act in Relation to Derivatives Regulation?

The Dodd-Frank Act (2010) was enacted after the 2008 financial crisis to reform the financial system, specifically bringing much of the previously unregulated Over-The-Counter (OTC) derivatives market, particularly swaps, under regulatory oversight. It mandated central clearing, exchange trading, and reporting requirements to reduce systemic risk and increase transparency.