Introduction

This blog will examine the evolving world of derivatives in hopes of generating constructive ideas as to how to achieve a better balance between innovation and reliability in the markets.  Recent events, such as the Libor rate fixing scandal, the failure of MF Global, and the collapse of the Peregrine Financial Group, have lend Congress -- among many others -- to question whether the present market structure provides sufficient customer protections to enable effective hedging of risk.  In the coming weeks, I will invite comment on the state of the derivatives markets and provide my own impressions and suggestions in an effort to elicit concrete contributions toward developing more stable and effective markets.