What is the over-the-counter market for derivatives

Reference no: EM131304375

An article in the Wall Street Journal on proposals to change the regulations governing the trading of financial derivatives contained the following: The SEC and the Commodity Futures Trading Commission are both seeking greater authority to police the over-the-counter market and hope new powers can help them reduce the risks that over-the counter trading may pose to the broader system.

a. What is the "over-the-counter market" for derivatives?

b. What does the article mean by "broader system"?

c. How might over-the-counter trading of derivatives result in risks to the broader system?

Reference no: EM131304375

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