House Ag Committee Hears Over-The-Counter Testimony
Concern for the end user of derivative markets voiced.
Compiled by staff
Published: Sep 18, 2009
Thursday the House Agriculture Committee reviewed the Treasury Department's legislative proposal regulating the over-the-counter market for derivatives. The final of two scheduled hearings featured witnesses representing exchanges, clearinghouses, and end users. In July, the Agriculture Committee and the House Financial Services Committee held a joint hearing examining the testimony from Treasury Secretary Timothy Geithner.
Committee Chairman Collin Peterson, D-Minn., said several of the Treasury Department's OTC proposals are similar in concept to legislation that the committee has already passed this year, including mandated clearing of all standardized over-the-counter products, and setting capital and margin requirements for dealers.
"While I do have some outstanding concerns regarding Treasury's ideas, such as the fair treatment for end users in any regulatory overhaul," Peterson said. "I think their ideas can contribute to much-needed legislation that gives the American people the confidence that our markets are being overseen and monitored by strong, effective regulators."
Ranking Member Frank Lucas, R-Okla., said, "We need to find ways to provide greater transparency to the over-the-counter derivatives market. However, today's hearing proved there are concerns that the administration's proposal overreaches. I am concerned that the proposal will reach all the way to the end user, which needs the over-the-counter market to manage risk."
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