WASHINGTON - Sen. Richard G. Lugar, R-Ind., introduced legislation Thursday that would exclude over-the-counter derivatives, including swap agreements, from federal regulation.
The provision is part of a bill that would reauthorize the Commodity Exchange Act and repeal the prohibition on single stock futures. The bill includes many provisions recommended in December by the President's Working Group on Financial Affairs, including allowing sophisticated investors to trade electronically without oversight. Rep. Tom Ewing, R-Ill., introduced companion legislation last month.
Banking industry officials worry that regulation could push the OTC derivatives market overseas. "The goal of this legislation is to ensure that the United States remains a global leader in the derivatives marketplace," Sen. Lugar said.
