Australian regulators are warning of years of volatility in the financial markets after US President-elect Donald Trump takes office.

"It's one thing standing for election and putting up proposals but when you're in government you have to look at the unintended consequences," said Australian Securities and Investments Commission chairman Greg Medcraft to a lunch in Melbourne, as quoted by Fairfax Media.  "It probably means taking on more risk in the financial system but you've got to weigh that up."

Mr. Medcraft is referring to Trump's plans to scrap the Dodd-Frank Act of 2010, which restrained US bankers from the risky and ultimately self-destructive practice of trading derivatives - something that led directly to the Global Financial Crisis of 2010.  The transition team claims the incoming administration will "replace it with new policies to encourage economic growth and job creation".

Wayne Byres, chairman of the Australian Prudential Regulation Authority warned that markets could see major swings because of Trump's inconsistent policy statements. 

"It's hard to see what the plan is at this point. And the only thing that we can be certain of is there will be more volatility," said Mr. Byres.  "I think it's just far too early to say anything other than there's a significant probability there will be some regulatory reform."