On Friday, House Agriculture Committee Chairman Collin Peterson (D-Minn.) introduced discussion draft legislation to regulate the market for over-the-counter derivatives. Peterson introduced the draft to support ongoing efforts by his committee, the House Financial Services Committee, and the Obama administration, to enact legislation that would bring order to the largely unregulated OTC swaps market that played a large role in the credit crisis and the collapse of some of America's largest
"This draft reflects the hearings that the agriculture committee recently held looking at current OTC reform proposals, and it incorporates provisions that have been proposed by chairman Barney Frank's committee and the administration," Peterson says. "In this draft, we attempt to reflect the concerns of end users while bringing oversight and transparency to OTC trading. I believe this draft and the feedback we receive from it in our committee will help us move forward quickly to enact much-needed legislation to restore accountability to our financial markets."
The draft circulated today contains provisions addressing OTC clearing, trading, capital and margin requirements, and position limits. It builds on legislation that the House Agriculture Committee passed earlier this year, H.R. 977, to strengthen the oversight of futures, options and OTC markets.
The legislative text and a side-by-side comparison of recent derivatives reform proposals are available on the House Agriculture Committee Web site.
Source: House Agriculture Committee