In this way, regulators are taking an experience-based approach to managing systemic risk that looks across the combined effect of a number of related regulatory initiatives. Conclusion The financial crisis revealed significant flaws in the structure of the OTC derivatives markets that are now being addressed as part of a worldwide reform effort.
Increased central clearing and margins for noncleared derivatives are foundational elements of the program. Together, these reforms can help create a system in which the OTC derivatives market infrastructure acts as a pillar of strength in the next crisis.