University of Houston Finance Professor Craig Pirrong analyzed Commissioner Dan Berkovitz's support for Dodd-Frank reforms that "have in fact likely increased concentration" by increasing fixed regulatory costs for those operating in this sector.
University of Houston Finance Professor Craig Pirrong analyzed a recent court determination that a Chicago trader and his firm had neither manipulated nor attempted to manipulate the price of certain interest rate swaps.
University of Houston Finance Professor Craig Pirrong criticized regulators for concentrating on reforming the OTC derivatives market while ignoring the "myriad connections of this market to other parts of the financial market."
University of Houston Finance Professor Craig Pirrong asserted that Deutsche Bank's exit from U.S. swaps clearing due to capital cost concerns is symptomatic of "how major portions of Dodd-Frank and the regulations emanating from it need a thorough review and in some cases a major overhaul."
University of Houston Finance Professor Craig Pirrong argued that regulatory efforts to make central counterparties more resilient might help to mitigate credit risk, but they also exacerbate liquidity risk, which in turn creates the "recipe for a broader market crisis."
University of Houston Finance Professor Craig Pirrong described the "horror story" of systemic clearing mandates, and explained why he remains skeptical that regulators will "take heed of the lessons of Brexit."
In response to reports that the European Commission is finalizing legislation on Central Counterparty recovery, University of Houston Finance Professor Craig Pirrong identified sources of "fundamental tension" that underlie the final resolution authority.
University of Houston Professor Craig Pirrong argued that a paper on central clearing authored by the Office of Financial Research asked the wrong questions and ignored important factors concerning risk.
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