This paper will examine the inherent regulatory challenges associated with over the counter (OTC) financial derivatives markets in the first instance. The paper will then move to dissect the traditional role of gatekeepers within transnational private regulatory frameworks governing the OTC derivatives markets, spearheaded by the International Swaps and Derivatives Association (ISDA) and shored up by other actors. This will be followed by an overview of the recent deepening of direct public regulation in the OTC derivatives markets, as signalled, for example, in the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States and the European Market Infrastructure Regulations in the European Union. In light of these developments, the paper will question as to whether, in reality, the public regulatory proposals really threaten the position occupied by the gatekeepeers in the transnational private regulatory regime or whether the emerging regulatory paradigm could be conceptualised as something else altogether. In light of some tentative findings, potential practical and normative implications will be discussed.
