James Gkonos and Mark Cawley on Current Developments in State and Federal Regulation of Swaps and Derivatives

James Gkonos and Mark Cawley on Current Developments in State and Federal Regulation of Swaps and Derivatives
Mark C. Cawley, James S. Gkonos, Authors
LexisNexis Research Solutions

James S. Gkonos and Mark C. Cawley, Special Counsel in the Insurance Practice Group, wrote this commentary that examines the movement by state insurance departments and the federal government to increase regulatory authority over what had been the mostly unregulated credit default swap market.

While the commentary concedes it is too early to know the extent and form of anticipated regulation, it suggests that a "truly comprehensive solution would entail seamless federal and state regulation, since these products appear to be both insurance and financial instruments." The article concludes that uniform regulation would provide clarity and greater confidence in the operation of the market place.