A top member of the Senate Banking Committee unveiled a bill Tuesday to regulate derivatives.

Sen. Jack Reed, D-R.I., who chairs the Senate Banking subcommittee on securities, insurance and investment, introduced a bill that would move standardized over-the-counter derivatives trades onto central clearing platforms, require prudential supervision of all "significant derivatives traders" and establish reporting and business conduct requirements for all trades and trading parties.

A statement from Reed's office said that the bill "goes far beyond" the derivatives legislation proposed by the Obama administration "by covering all derivatives trading, not just swaps." The statement said Reed's bill would also enlist the Commodity Futures Trading Commission and the Securities and Exchange Commission to help bank regulators write rules on capital and margin requirements for banks that are considered "significant market participants."

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