House Agriculture Committee Chairman Collin Peterson, D-Minn., released draft legislation Wednesday to regulate derivative trading.
The bill would limit foreign participation in U.S.-based electronic derivative trading, increase reporting requirements for traders, and attempt to limit "excessive speculation" by imposing position limits on trades.
Some over-the-counter derivative trades would have to be reported; and the Commodity Futures Trading Commission would have the authority to determine whether over-the-counter trades had "the potential to disrupt market liquidity and price discovery functions, cause severe market disturbance, or prevent prices from reflecting supply and demand."
The bill also would expand the commission's staffing by 200.
The date has not been set, but Rep. Peterson said one or more hearings on the legislation would be held next week.