This piece provides an overview of the derivatives reform related regulatory rule writing process, but a focus on the numbers. How much will it cost, how much (or little) are regulators spending on technology and just how big is this market.
“All the data will be reported to regulators to seek out systemically risky situations. But the reality is that the technology required to sift through all this data is out of reach of regulatory budgets,” says Tabb Group senior analyst Kevin McPartland. “Furthermore, just looking at the OTC derivatives of an institution won’t give regulators a full view of the underlying risks. They need to look at everything on the balance sheet.”