Business Quote by Nassim Nicholas Taleb
“We should probably stop trading derivatives, anything more complex than regular options ... I am an options trader, and I don't understand options. How do you want a regulator to understand them?”
About This Quote
Source Interview: 2023 Financial Times interview with Nassim Nicholas Taleb
Complex financial instruments can outpace regulator expertise, creating systemic risk.
In simple terms: Derivatives are too complex for regulators.
Simplify or improve regulator understanding.
Themes
Mood
Type
When to use this quote
- policy making
- financial oversight
- risk management
Key Concepts
Questions to Reflect On
- How can regulators keep pace with financial innovation?
- What safeguards can prevent misuse?
Regulators may lack technical resources to grasp all nuances.