Dodd-Frank: The Regulatory Reset of the OTC Derivatives Markets

July 26, 2010
Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides, for the first time, a comprehensive regulatory framework for the over-the-counter derivatives markets. Title VII aims to prevent future financial crises by mandating robust market and transaction-level transparency, while reducing structural leverage and systemic risk throughout the derivatives markets. While significant portions of Title VII remain subject to rulemaking by the SEC and the CFTC, Title VII codifies the global de-risking process underway since the start of the financial crisis. This update, which is part of a series of Dechert OnPoints regarding financial regulation reform, provides an overview of this landmark OTC derivatives regulation.