Out of the Black Hole: Regulatory Reform of the Over-the-Counter Derivatives Market

Name of Publication: 
Make Markets Be Markets


A litany of factors, including lending and financial abuses, led to the subprime meltdown and resulting deep recession.  But chief among them was the opaque and unregulated over-the-counter (OTC) derivatives (often referred to as "swaps") market, which was estimated to have a notional value of $596 trillion at the time of the crisis.

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Michael Greenberger is a professor at the University of Maryland School of Law, where he teaches a course entitled "Futures, Options and Derivatives."  In 1997, Professor Greenberger left private practice after more than 20 years to become the Director of the Division of Trading and Markets at the Commodity Futures Trading Commission.  He currently serves as the Technical Advisor to the United Nations Commission of Experts of the President of the UN General Assembly on Reforms of the International Monetary and Financial System.  He has also been named to the International Energy Forum's Independent Expert Group.

The views expressed in this paper are those of the author and do not necessarily reflect the positions of the Roosevelt Institute, its officers, or its directors.