Market participants have welcomed US president Barack Obama’s plan for reforming the regulatory oversight of the US financial markets. On June 18 the president outlined his vision for regulatory change which included “comprehensive regulation” of all over-the-counter (OTC) derivatives and closer cooperation between the Commodity Futures Trading Commission and the Securities and Exchange Commission, although he stopped short of merging the two US regulators.
The regulatory reform proposal is entitle the: “Financial Regulatory Reform: A New Foundation”.
Obama said transparency and improving market discipline lay at the heart of his administration’s proposal.
As expected, Obama said his administration will demand that banks increase capital reserves and recommended that the Basel Committee on Banking Supervision develop a more stringent set of guidelines for how banks handle their capital and exposure to risk.
Obama confirmed his administration would call on the market to embrace...