Derivatives Reform Overview
Legislative bodies in the U.S. and Europe are moving to increase regulation of the over-the-counter (OTC) derivatives market. In the US, President Barack Obama has signed into law the Restoring American Financial Stability Act of 2010. Regulatory bodies will now begin drafting rules based on the framework in the bill. In Europe, The Committee of European Securities Regulators (CESR) has issued two consultation papers designed to define certain terms in the new OTC derivatives landscape and asking for comments. The deadline for comment on the two reports, titled “Standardization and Exchange Trading of OTC Derivatives” and “Transaction Reporting on OTC Derivatives and Extension of the Scope of Transaction Reporting Obligations”, is August 16.