Comment Text:
The ability for institutions and individual investors to assess the solvency and financial condition of a potential fiduciary, broker or bank is critical to proper risk assessment and hedging. Increased transparency into the swap and derivative exposure of market participants and market makers is a critical step in providing a proper view into this risk class. The requirement to provide timely and accurate reporting and the timely dissemination of this information to the investing public is a small burden compared to the potential systemic risk of these positions remaining hidden from the market.
I highly advocate for more transparency involving all listed entity types from the CFTC. With recent news reports stating that many 10s of trillions of dollars worth of derivatives are unaccounted for is not only alarming, it should be embarrassing to you as the regulatory body for the derivatives market. Yes, please impose more bookkeeping and transparency in these markets. I doubt it’ll cost more than $80 trillion to do so.
