In day two of the House Agriculture Committee hearing on the Derivatives Markets Transparency and Accountability Act of 2009, leaders of exchanges and firms that use derivatives continued to debate a bill that would severely limit credit derivatives and force all over the counter derivatives to be centrally cleared.
The experts focused on bringing more transparency to OTC markets and greater flexibility to international exchanges.
Michael Masters, managing member of Masters Capital Management, a long-short equity hedge fund, told legislators that the bill proposed by Representative Collin Peterson, the committee’s chairman, “goes a long way toward rectifying the inherent problems in our current regulatory framework”. Peterson’s bill would ban use of credit default swaps to entitites that did not...