What Regulatory Measures Were Introduced Post-2008 to Mitigate OTC Counterparty Risk? ▴ Learn

What Regulatory Measures Were Introduced Post-2008 to Mitigate OTC Counterparty Risk?

The primary measures were mandated central clearing for standardized OTC derivatives, reporting of all swap transactions to trade repositories (data transparency), and higher capital and margin requirements for non-centrally cleared swaps. These changes, largely driven by the Dodd-Frank Act in the US and EMIR in Europe, aimed to reduce systemic risk.

The goal was to move riskier contracts to a safer environment.

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