Wolin defends derivatives regulations

Derivatives traders have voiced strong opposition to the new regulations proposed under the Dodd-Frank financial reform act, but regulators are not backing down. Deputy Treasury Secretary Neal Wolin responded to critics in a speech to the Pew Charitable Trust, according to MarketWatch.

Much of the debate in Congress regarding capital requirements for derivatives trading has centered around the exemption of commercial end users, but Deputy Secretary Wolin spoke confidently that such companies would be excluded. Major investment traders, however, must be held to stricter standards, he contended. Wolin claimed higher capital requirements are necessary to protect against major shocks.

“We needed reform because, ultimately, a fragile system benefits no one,” said Wolin.

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