The US Senate Banking Committee has proposed its own draft plan for reforming the over-the-counter derivatives markets, a proposal that would also require all standardised derivatives to be traded at an exchange and cleared by a clearing house.
Christopher Dodd, US Senate Banking Committee chairman, unveiled the proposal yesterday (November 10), which closely mimics the proposal of US President Obama.
“We will eliminate regulatory gaps that allow risky practices to literally fly beneath the radar, including OTC derivatives, hedge funds, asset-backed securities, and payday lending,” Dodd said the Democratic Senator from Connecticut.
The Senate committee’s proposal would require all standardised...