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Confusion remains on OTC derivatives 

September 3, 2014
Malavika Santhebennur, Money Management

A lot of uncertainty is still lingering around over-the-counter (OTC) derivatives and what it means for financial entities with less than $50 billion outstanding, a law firm partner believes.

Henry Davis York partner Lucinda McCann said these entities are still trying to argue that they should not be caught at all even though they trade in OTCs.

"They're sort of pushing back on being covered at all by the transaction reporting requirements," McCann said.

"Their point of view is, well, we're definitely not systemically significant. And if you look at some of the issuers of derivatives in the retail space in particular, for example the contracts for difference (CFD) providers, who are issuing CFD to individual retail investors, it's hard to see how those trades in OTC really need to be reported to the regulators."

Read more: Money Management

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