More Regulation for the Derivatives Market?

" Fox Business morning you know regulation of the derivatives market is a hot potato in Washington one that some parents say cold for regulation and transparency. Against financial institutions to say that new rules -- could suffocate the system among other things -- joining us this morning. From the London Stock Exchange to talk about this is David clock is chairman of the wholesale market brokers association here in London and mr. -- good morning to you thank you for coming in and talking to us about and exciting issue of derivatives do you think that the over the counter derivatives market. Needs a great the level of regulation."

" Regulation really isn't an encore books regulation as well financial institutions. And it's certainly true -- say that some of the -- we collectively in the financial markets have created have been more than doing this more than explosive and we understand that. But principally that are in this structured credit the epicenter of what's happened in the credit crunch does relate to very complex instruments and particularly around us policy is notably. The poverty world -- have been something good to quite you folks in many respects. Over the counter markets have been with a certain generations and generations in the book well. The question was -- the book efficiently. And the -- wholesale markets and we -- the markets alike. I'm hoping -- would hope to see from the regulated to something which focuses on the regulation of institutions. And in principle through capital adequacy."

" Well he kind of touched on that so so how much did credit derivatives contribute to the financial mess and wasn't really the system -- was -- the plans. Who left themselves too exposed."

" And I think. A degree of order of those but mostly the -- that he feels to exposed because at the end of the day they didn't clearly I'm will go through this fully understand the risks. Well some of the more complex derivatives and particularly in the studio will sit here squared -- atheist quote these things for the public's that we -- of the most the coming decade and a half. Which have been cricket before but too much with a degree and the risks and the -- times -- to the entire system -- the ones who wouldn't be where we don't know. The OTC will didn't create these crooks on its own. -- C will house many many public so many derivative public's. And the underlying credit defaults fault and the index waltz of the building blocks of what will become the next. Credit derivative markets for quite clearly royal which -- of credit for -- structure thought it would have who has changed emotion."

" Very quickly and we're running out of time and real pretty upset when he first heard of mr. Geithner is a new steps of regulations. Are you still as concerned."

" That we -- very pleased to -- mr. going to says about what his intentions on we've certainly agree that. The move to central counterparty clearing is one that we want taken within preparing for quite a long while what concerns us in the press release that you're referring to. With the press and attached itself to that there was an implication. That's -- markets and OTC markets will manipulative speculative. I'm unfit for which opened -- frequent home."

" Very good all right were already at a time -- caught with a wholesale market type. Brokers association thank you very much for coming in until it was about derivatives and the markets and regulation often thank you so much the scope."