Far-reaching reform of the US derivatives market came a big step closer yesterday (Thursday) when debate began on Senator Christopher Dodd’s financial reform bill. If the proposal becomes law it will be one of the most important watersheds in the market’s history.
After Republican senators gave up a three day fight to block the debate, reportedly in return for six concessions from Democrats, the 1,600 page bill can now be discussed openly in the Senate.
The bill was prepared by Dodd, the Connecticut Democrat who chairs the Senate Banking Committee, during several months of discussions in that committee. To become law it will need to pass the Senate, then be merged with a similar bill that has passed the House of Representatives, and finally be adopted...