The impact of increasing regulation on the derivatives market
Sihvonen, Touko (2014)
HAAGA-HELIA ammattikorkeakoulu
2014
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201405086640
https://urn.fi/URN:NBN:fi:amk-201405086640
Tiivistelmä
This thesis examines the impact of the Group of Twenty regulatory reform program on the over the counter derivatives market. The Group of Twenty started a reform program in 2009 with the aim of building a more secure market for over the counter derivatives. The objective of this thesis is to show how the principles of the regulatory reform program were implemented into working regulation within the European Union.
The thesis is made up of a theory section and an empirical section. The theory section consists of established finance literature. The main focus is on literature dealing with the structure of financial markets and on the theory of derivatives. A large part of the theory section is dedicated to the reasons and causes behind the recent financial crisis.
The empirical section of the study is based on qualitative research methods. The empirical material is gathered from countless articles, surveys and letters.
The thesis shows that the newly created derivatives regulation of the European Union is not fully in line with the principles outlined by the Group of Twenty. The research showed that the implementation of the regulation has not been a total success. The implementation has been plagued by rush, technical problems, political motivations and mistakes made in past legislation. Some fear that certain parts of the European Union regulation are threatening to undermine the original Group of Twenty commitment to bring safety and transparency to the derivatives market.
However, this study was done at a time when the European regulation was not yet fully implemented. The regulatory work is an ongoing process and it is expected that the problems noticed in this thesis will be solved at a later time.
The thesis is made up of a theory section and an empirical section. The theory section consists of established finance literature. The main focus is on literature dealing with the structure of financial markets and on the theory of derivatives. A large part of the theory section is dedicated to the reasons and causes behind the recent financial crisis.
The empirical section of the study is based on qualitative research methods. The empirical material is gathered from countless articles, surveys and letters.
The thesis shows that the newly created derivatives regulation of the European Union is not fully in line with the principles outlined by the Group of Twenty. The research showed that the implementation of the regulation has not been a total success. The implementation has been plagued by rush, technical problems, political motivations and mistakes made in past legislation. Some fear that certain parts of the European Union regulation are threatening to undermine the original Group of Twenty commitment to bring safety and transparency to the derivatives market.
However, this study was done at a time when the European regulation was not yet fully implemented. The regulatory work is an ongoing process and it is expected that the problems noticed in this thesis will be solved at a later time.