Unregulable: Why Derivatives May Never be Regulated
Brooklyn Journal of Corporate, Financial & Commercial Law, Vol. 4, p. 269, 2010
28 Pages Posted: 19 Jan 2010 Last revised: 12 Aug 2011
Date Written: January 19, 2010
In this paper I explore various methods of regulating financial derivative contracts, including (a) regulation by judicially created case law, (b) regulation as gambling, (c) regulation as insurance, (d) regulation as securities, (e) regulation via a clearinghouse and (f) oversight by a super financial regulator. After discussing the drawbacks of each approach, I conclude that derivatives may be beyond the reach of the law, and indeed may be a trend whose prevalence rises and falls based only on the zeitgeist of society.
Keywords: derivatives, regulation
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