US treasury secretary Timothy Geithner has said the Obama administration will seek new legislation to force over-the-counter derivatives to be cleared via a central counterparty.
In prepared testimony before a hearing of the House of Representatives’ Financial Services Committee yesterday (March 26), Geithner promised to: “Force all standardised OTC derivative contracts to be cleared through appropriately designed central counterparties.”
The treasury secretary said this should be coupled with “encouraging” more use...