Some hedge funds are taking huge positions on listed derivative markets. It's just that when they fail through listed markets the boom is spread a bit to the clearing exchange members and it happens earlier through margin calls.
Whereas in the OTC market you have only one counterparty that takes the boom (or a chain of counterparties).
AFAIK, there is no more regulatory reporting requirement in OTC than in listed.
Banks are supposed to monitor their risk and regulators supposed to monitor banks risk monitoring. If a bank blows up, the boom goes to in order:
Do you mean no less regulatory requirement? Can the last politician to go out the revolving door please turn the lights off?
OTC requirement = listed requirement.
