Getting your player ready...
WASHINGTON — A new U.S. regulatory regime being pushed by Reps. Barney Frank and Collin Peterson for the $592 trillion over-the-counter derivatives market leaves open for debate whether to ban so-called naked trading.
The proposal, which would push most derivatives onto an exchange or clearinghouse, fails to resolve the issue of outlawing credit-default swaps where the buyer doesn’t own the underlying asset. A summary of the plan also shows lawmakers haven’t agreed on disclosure rules or how to divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
