Following the downgrade of 15 major banks’ credit ratings by Moody’s, a group of proprietary traders and hedge funds has renewed its call for mandatory central clearing for OTC derivatives.
“We urge the regulators to complete the implementation of the clearing mandate under Dodd-Frank as expediciously as possible,” the Clearing Coalition said in a statement. The group also sent CFTC Chairman Gensler and SEC Chairman Schapiro a letter on May 22 urging the to implement central clearing by the end of the year.
Dodd-Frank opponents argue that, far from underlining a need for more regulation, the downgrades demonstrate that the Act has failed to achieve its objectives.
