Risk Derivatives Summit : Transparency not a cure-all

Moves to increase transparency and simplicity in the derivatives market might have some benefit, but are certainly not the single remedy needed after the financial crisis, according to panellists at the Risk Derivatives Summit in London yesterday.

In a discussion on the future of derivatives, two buy-side practitioners and a European Commission official agreed that the over-the-counter derivatives market could not be held singly responsible for the crisis, so any structural changes would be only part of the solution.

There was consensus that, although the introduction of a central counterparty for the clearing of credit default swaps represents an important step, it would not be a silver bullet.

"I think we need to look a little bit more