Dodd Frank Act and the Brazilian Capital Market – Extraterritorial Effects of Regulation to the Over-the-Counter Derivatives Market

Abstract

This paper aims to describe the chief alterations proposed by the Dodd Frank Act to the American over-the-counter derivatives market and, at the same time, understand the extraterritorial reach of this law compared to the regulatory framework of the Brazilian derivative market. In order to do so, I will study the extraterritorial effects of the law, particularly in reference to the international nature of Title II of the Dodd Frank, which deals with the over-the-counter derivatives, in order to evaluate its reach to foreign markets, especially the Brazilian market.

Keywords: Dodd Frank; Derivatives; Brazilian Derivatives Market; Clearing House; Extraterritorial Effect