WASHINGTON — The Treasury Department wants a central electronic-based system to track the buying and selling of over-the-counter derivatives, a class of financial instruments that includes the risky contracts that helped bring down the giant insurer AIG, according to a draft letter to Congress.
The letter, obtained by The Associated Press, says the goal is to bring transparency to the shadowy market. Doing so would deter financial firms from taking undue risk, prevent fraud and ensure they are marketed appropriately, the letter states.
Current law largely excludes the privately traded derivatives from regulation.
by the associated press
The letter, obtained by The Associated Press, says the goal is to bring transparency to the shadowy market. Doing so would deter financial firms from taking undue risk, prevent fraud and ensure they are marketed appropriately, the letter states.
Current law largely excludes the privately traded derivatives from regulation.
by the associated press
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