House Agriculture Committee Chairman Collin Peterson, D-Minn., has introduced discussion draft legislation to regulate the market for over-the-counter derivatives. Peterson introduced the document to support ongoing efforts by his Committee, the House Financial Services Committee, and the Administration, to enact legislation that would bring order to the largely unregulated OTC swaps market. That market played a large role in the credit crisis and the collapse of some of America's largest financial institutions.
This draft reflects recent hearings held on the problem by the Agriculture Committee. It incorporates provisions that have been proposed by the Financial Services Committee and the Administration. Peterson says that in this draft, they're attempting to reflect the concerns of end users while bringing oversight and transparency to OTC trading.
The draft contains provisions addressing OTC clearing, trading, capital and margin requirements, and position limits. It builds on legislation the House Agriculture Committee passed earlier this year, H.R. 977. Peterson says this discussion draft legislation will help Congress move forward quickly to enact much-needed legislation to restore accountability to the financial markets.