In particular, SMMEs face considerable difficulty with sourcing start-up finance. Given the risk involved at this stage, most commercial banks are very reluctant to go into such ventures. This has led in recent times to an increasing role for, credit guarantee schemes and venture capital in the SMME sector.
When such migration occurs, government regulators should consider carefully whether less regulation or different regulation would provide a better cost-benefit tradeoff without compromising public policy objectives. Historical Development of U.S. Government Regulation of Derivative Markets Before evaluating the current regulation of derivatives in light of these considerations, it is quite useful to know something of the history of these instruments and their regulation.