Reportedly the Commodity Futures Trading Commission is issuing regulations to rein in the use of Derivatives and in particular Credit Default Swaps. See Ben Protess, "U.S. Regulator Adopts New Rules on Derivatives, a Key Step in a Wall St. Overhaul" p. B5, col. 1 (New York Times Nat'l ed., Friday, July 8, 2011), posted in New York Times Online in Dealbook Blog.
This raises important questions of "who" and "what".
"Who"--Who are the people drafting the regulations? Do they include people with insurance experience? Credit Default Swaps functioned like insurance. CDS's were used to bypass State Insurance regulation. I do not mean to say that the Federal regulators do not know what they are doing. I am asking questions here, not making a statement.
"What"--What exactly do these regulations do -- from the viewpoint of a person familiar with insurance regulation? How do they operate -- in the eyes of a person with experience in the regulation of insurance?
These and a number of other questions generated by this news can only be answered by interested, experienced insurance practitioners. I do not mean only lawyers or insurance company representatives, although they are certainly experienced and presumably are very interested in this development. No, I mean to include also State Insurance Commissioners, insurance defense associations, and policyholder groups of all kinds. All are welcome to address this call for your comments. What you think and say as an insurance practitioner is important, in this venue now, and never more so.
Please Read The Disclaimer.
Comments