John Marshall Global Markets Law Journal


Leo Melamed


In 1972 the International Monetary Market (the “IMM”) was launched in order to provide the financial world the same ability as the agriculture industry to manage risk. At the time, no one knew if the IMM would succeed, have any merit, or be accepted by other members of the financial world. The IMM’s commencement was before the age of technology—before the onset of computers. Once computers existed, financial engineers had the ability to electronically allocate risk and the world began to acclimate to the idea of computer-generated financial derivatives. This Article stresses that full disclosure and transparency is dire in the realm of derivatives. In order to promote disclosure and transparency, there must be rules and regulations. Via the imposition of rules and regulations, regulators have the duty to make sure that the financial assets of this generation continue to exist for the future generations.