SEC, CFTC Push To Regulate OTC Derivatives Dealers

Law360, New York (June 19, 2009, 12:00 AM EDT) -- In Senate testimony Monday, the heads of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission both backed regulation of all over-the-counter derivatives dealers as a way to prevent excessive risk taking and to prevent a future market meltdown.

Mandating capital and margin requirements on OTC derivatives dealers will give regulators the chance to set guidelines for contracts companies enter into to hedge currency, commodity and other risks that would not fall under the purview of a centralized clearinghouse or exchange, CFTC...
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