Overhaul of OTC Derivatives Market Advances in House

摘要

The House Financial Services Com-mittee last Thursday approved by a wide margin a measure that calls for sweeping overhaul of the $500 trillion-plus over-the-counter (OTC) derivatives market. The bill (HR 3795) cleared the panel by a vote of 43 to 26, breaking down along party lines. It requires any deriva-tive product that is cleared through a clearinghouse to be traded on an ex-change or electronic platform if the de-rivative contract is between two financial institutions. However, it would ex-empt end-users-such as energy pro-ducers and consumers-from having to trade on exchanges if they use deriva-tive products to hedge commercial risk see NGI, Oct. 12).