Transparency and Security in the Derivatives Market: The Brazilian Case

32 Pages Posted: 23 Oct 2016

See all articles by Marcelo Maziero

Marcelo Maziero

University of Sao Paulo - FEA; Massachusetts Institute of Technology (MIT) - Sloan School of Management

José Savoia

FEA-USP

Fabiana da Silva

FIPECAFI; University of São Paulo (USP)

Date Written: January 20, 2016

Abstract

The over-the-counter (OTC) derivatives were considered a core cause for the increase of the systemic risk in the global markets, which ended up in the burst of the markets on the financial crisis in 2008. Among the lessons learned, the need to improve the transparency, controls and surveillance of the derivatives markets is a key driver to the structural reforms designed to make the derivatives markets less susceptible to the excesses observed in the period before the peak of the crisis. On this paper we compare the intended configuration for the global derivatives markets after the implementation of the reforms proposed by G20/FSB with the one existent in the Brazilian market since the beginning of this century, showing that the Brazilian derivatives market already presented very high standards of transparency and control. Based on this conclusion, we also propose that the global regulators carefully study the Brazilian case, benefiting from the experience of a market that has been working successfully on this subject for more than 30 years.

Keywords: Derivatives, Swaps, CDS, CDO, Central Counterparty, Trade Repository, Brazilian Market, Risk Management, Financial Market Infrastructure, Systemic Risk, Markets Regulation, Market Transparency

JEL Classification: G1, G2

Suggested Citation

Maziero, Marcelo and Ferreira Savoia, Jose Roberto and da Silva, Fabiana, Transparency and Security in the Derivatives Market: The Brazilian Case (January 20, 2016). Available at SSRN: https://ssrn.com/abstract=2856353 or http://dx.doi.org/10.2139/ssrn.2856353

Marcelo Maziero (Contact Author)

University of Sao Paulo - FEA ( email )

Av. Prof. Luciano Gualberto 908
Sao Paulo
Brazil

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

77 Massachusetts Ave. E62-663
Cambridge, MA 02142
United States

Jose Roberto Ferreira Savoia

FEA-USP ( email )

Av. Prof. Luciano Gualberto 908
São Paulo SP, São Paulo 05508-900
Brazil

Fabiana Da Silva

FIPECAFI ( email )

Rua Maestro Cardim, 1170
São Paulo
Brazil

University of São Paulo (USP) ( email )

Rua Luciano Gualberto, 315
São Paulo, São Paulo 14800-901
Brazil

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