Tradeweb Statement on Derivatives Reform
Posted on Thu, Jul 15, 2010 @ 02:12 PM
Lee Olesky, Chief Executive of Tradeweb, issued the following statement after the passing of the Financial Reform Bill:
Tradeweb supports the passing of today’s historic financial reform legislation. We believe that this new regulatory framework will drive the majority of over-the-counter derivatives trading to electronic platforms. However, history teaches us that the inevitable compromises made in the legislative process can lead to ambiguities as reforms are implemented.
It is essential that the resulting regulations effectively expand the framework for a more transparent and competitive marketplace, such as trading through swap execution facilities (SEFs). These new rules must clearly define a setting for the trading of OTC derivatives that better serves market participants, enhances transparency, reduces systemic risk and enables more rigorous oversight of these important risk-management tools – the same principles that have driven the growth of electronic trading for the OTC markets over the last 10 years.
