Chairman of the Commodity Futures Trading Commission Gary Gensler has voiced his support for centralised clearing of OTC derivatives in the US. In a speech to the Council on Foreign Relations, he acknowledged the value that regulated derivatives, such as futures, have for corporations, but went on to emphasise that over-the-counter derivatives pose a threat to the financial system. He proposed three reforms that would stabilise the OTC market; regulation of dealers, price transparency and centralised clearing.

"Derivatives are contracts used by corporations, municipalities, nonprofit organizations and others to protect themselves from the risk of a future change in markets," he said. "Things started to change in 1981 with the first over-the-counter derivative transaction... In the last three decades, the over-the-counter derivatives marketplace has grown up. It is certainly no longer in its embryonic stage, but it remains unregulated."

This, Gensler said, cast a shadow over US taxpayers: "Some opponents of reform argue that derivatives were not at the centre of the crisis and should thus not be regulated. I believe, however, that over-the-counter derivatives were at the heart of the crisis...$180 billion of taxpayer money went into AIG. That's about $600 from each person in this room... Wall Street's interests are not always the same as the American public's interests. In maximizing their profits, the banks are fulfilling their fiduciary duty to their shareholders, but they do not owe a similar duty to the taxpayers."

Earlier in the week a letter was sent by the European Association of Corporate Treasurers and signed by 160 corporations asking for exemption from centralised clearing of their OTC trades in Europe as it would increase their liquidity risk and funding costs.