Like most human beings, I somewhat wish derivatives had never been invented—not because they aren’t useful (they are), but because discussion of how to regulate the derivatives trade makes my head hurt. I’m sure I am not alone on this.
Nevertheless, how derivatives are created, traded, and disclosed to the public is indeed an important discussion to have. Congress is in the final stages of hashing out its regulatory reform bill—which at last count has hit more than 1,900 pages—and apparently derivatives have become a late-stage battleground before the final legislation passes and becomes law.
