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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (29738)	10/3/2008 5:21:08 PM
From: TimF	Read Replies (1) \| Respond to of 71588

Reasonably regulated exchanges are a better way to do most trading. OTOH centralized exchanges are good at trading known specific standard securities, not so good at special ad-hoc deals for specific types of risk transfer. Also as regulation grows tighter on the exchanges, you get more and more desire (both for solidly legitimate reasons, and not so solid reasons) to move trade off the exchange, to new forms of trades that aren't yet covered by much regulation. If the current crisis results in too large or regulatory response we easily could get even more trades moving to new instruments, away from exchanges, and away from the US, possibly setting us up for a larger return of very similar problems in another generation or so.