Increased Market Transparency Is No Solution
(Forbes.com) — With the 2008 financial crisis still fresh in the minds of politicians, legislative solutions meant to help us avoid a repeat are being offered up with great urgency. Unfortunately, the alleged fixes only address the symptoms of poor policy, as opposed to its causes. Very popular at the moment is the notion of increased market “transparency,” particularly with regard to derivative transactions. Derivatives are investments whose values are derived from another security.