House Agriculture Committee Approves Derivatives Regulation
The House Agriculture Committee approved today legislation to regulate over-the-counter ("OTC") derivatives. Today's approval amends the bill passed out of the House Financial Services Committee on October 15, 2009. According to today's press release, "the bill institutes a clearing and trading requirement for all OTC swap transactions between dealers and large market participants that are accepted by a clearinghouse. Additionally, non-cleared swaps must be reported, with major participants and dealers adhering to strengthened capital and margin requirements. The bill exempts commercial end users who use derivatives markets to hedge their price risk from the clearing requirement."
Click here for the House Agriculture Committee's press release, and click here for the legislative text.
