WASHINGTON - Rep. Edward Markey, D-Mass., yesterday suggested that Congress may need to enact derivatives legislation, including sales practice measures that will protect municipalities and other unsophisticated investors from being sold inappropriate, risky derivative products.

"I am not at all convinced that volunteerism by the dealers and incremental adjustments to regulations by the regulators will be sufficient to respond to the new risks created by derivatives," Markey, chairman of the House Energy and Commerce Committee's telecommunication and finance subcommittee, said at the end of the first of three subcommittee hearings on derivatives.

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