Gary Gensler, chairman of the Commodity Futures Trading Commission, and Mary Schapiro, chairman of the Securities and Exchange Commission, told a US Congressional hearing yesterday (September 22) that the US Treasury’s proposal for reforming derivatives oversight must be strengthened to “further avoid regulatory gaps and eliminate regulatory arbitrage opportunities.”
Appearing before the House of Representatives’ Committee on Agriculture, the heads of the two US financial regulators urged tighter controls of the over-the-counter derivatives market.
Speaking first, Gensler described the proposal by US President Obama’s Treasury Department as “a very important step toward comprehensive regulation of the OTC derivatives markets.”
But Gensler urged...