“Major gaps and weaknesses” in the regulation of derivatives markets and shadow banks’ excessive reliance on short-term debt have left the US exposed to an economic catastrophe, according to the think tank founded by former Federal Reserve chairman Paul Volcker.

In a new report that questions the adequacy of post-crisis overhauls, the Volcker Alliance, founded in 2013, urged policy makers to consider a range of regulatory changes including transforming central counterparties, such as CME Group and ICE Clear Credit, into "non-profit utilities" and imposing debt limits on large non-bank institutions.