Brodsky calls for merger of CFTC and SEC

Reuters has a story about William Brodsky, CEO of the Chicago Board Options Exchange (CBOE), saying in a written statement there’s a “compelling need” to merge the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

Brodsky was scheduled to testify at a House of Representatives Financial Services Committee hearing on Friday about the Obama administration’s plan to reshape financial regulation amid the worst banking and capital markets crisis in generations. READ HERE.

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Geithner wants OTC derivatives traded on exchanges

A story from the Oil & Gas Financial Journal about U.S. Treasury Secretary Timothy Geithner talking about greater reglation for over-the-counter derivatives (OTC).

OTC derivatives are a type of contract used on the commodity exhange. They are privately negotiated and traded directly between two parties, without going through an exchange or other intermediary. CLICK HERE to read more about OTC derivatives.

Geithner says the Obama administration would like all standardised derivative contracts cleared through well-regulated central counterparties and executed either on regulated exchanges or regulated electronic trading systems.

Geithner says the reforms should not limit businesses’ efforts to manage financial risk (hedge):

“We want to preserve their capacity to participate in bilateral transactions as hedges as we increase overall protection for investors,” Geithner told a joint hearing of the U.S. House Agriculture and Financial Services Committees. READ HERE.