Second House Panel Votes For Swaps Regulation

[dtotire]

Source: REUTERS

Second House Panel Votes For Swaps Regulation


By REUTERS
Published: October 21, 2009




WASHINGTON (Reuters) - The House Agriculture Committee approved a bill on Wednesday for federal regulation of over-the-counter derivatives -- an Obama administration goal -- that would require many swaps to go through clearinghouses.

Transactions that involve "end users," such as manufacturers, utilities and airlines, would be exempt from clearing. Swap: that go through clearinghouses also must move onto regulated exchange or electronic platforms. Clearing and on-exchange trading are intended to reduce market risk.

It was the second approval in a week by a House committee of a bill to regulate the $450 trillion OTC derivatives market, widely blamed for amplifying the financial crisis.

The Agriculture Committee oversees the futures markets. A similar bill was approved on Thursday by the Financial Services Committee, which has jurisdiction over banks and equities.

(Reporting by Charles Abbott)

Read more: http://www.nytimes.com/reuters/2009/10/21/us/politics/politics-us-financial-regulation-swaps.html