Trkla Quoted on Clarity Gap

In an article on regulatory uncertainty over capital markets, Partner Kathryn Trkla said most over-the-counter derivative swaps will be regulated by the Commodity Futures Trading Commission (CFTC) while credit derivatives will be regulated by both the CFTC and Securities and Exchange Commission. She added that confusion may be created when a component drops from the construction of a credit default swap, altering the index from broad-based to narrow-based.