May 1, 2008: In an op-ed in today’s Financial Times, University of Texas law professor Henry Hu and Stanford finance professor Darrell Duffie discuss their recent study of the status of U.S. exchanges and financial institutions in the global derivatives market. The op-ed and the underlying study also address some of the policy choices available to enhance this status. The views expressed in the op-ed and study represent solely the views of the authors, and not of any other person or entity.
As of June 30, 2007, the global market solely for “OTC” derivatives (such as credit default swaps and currency and interest rate swaps) stood at $11 trillion in market value and $516 trillion in notional amount terms.
Henry T. C. Hu is the Allan Shivers Chair in the Law of Banking and Finance at the University of Texas School of Law and recognized for research as to such matters as debt and equity decoupling (e.g., “empty creditor,” “empty voting,” and “hidden (morphable) ownership”).
Darrell Duffie is the Dean Witter Distinguished Professor of Finance at the Stanford University Graduate School of Business and the President-elect of the American Finance Association.
Contact: Kirston Fortune, UT Law Communications, (512) 471-7330 or firstname.lastname@example.org