The over-the-counter derivatives markets will have a sounder and more transparent basis, with greater standardization of transactions, the requirement to use central counterparties for standardized contracts, and full and prompt access to data for the authorities.
We have identified many of the perverse incentives that encouraged excessive risk-taking – in banks’ executive compensation systems, in the role of rating agencies and in the accounting rules – and begun to rectify them. But much still remains to be done.