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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (21550)	7/27/2009 3:54:55 PM
From: zamboz	Read Replies (1) \| Respond to of 71442

Derivatives bill to clamp down on speculation finance.yahoo.com WASHINGTON (Reuters) - Congress will consider steps to curb speculation in the credit default swaps market and could ban naked swaps, according to a U.S. House of Representatives Committee document obtained by Reuters. The bill would give regulators authority to set position limits on credit default swaps (CDS) dealers. It would also shift oversight of ICE Trust Clearinghouse from the Federal Reserve to the Securities and Exchange Commission, the document said. Policymakers have been pushing for oversight of the $450 trillion over-the-counter derivatives market since insurer American International Group Inc's near collapse because of its exposure to credit default swaps. The swaps are used to insure against debt defaults and speculate on a borrower's credit quality. The Obama administration also wants clearinghouses to clear derivatives that are not traded on exchanges. The draft language takes a stronger line, saying derivatives must be traded on an exchange and cleared by approved clearinghouses with some exceptions. Those waivers include illiquid derivatives, those that are customized and if a so-called end user of derivatives does not qualify as a "major market participant," the document said. The White House is expected to release its proposed legislative language for derivatives on Thursday, according to a source familiar with the administration's thinking.