WASHINGTON -- Instead of additional legislation to keep tabs on unregulated derivatives brokerdealers, the Securities Industry Association is calling for the implementation of a voluntary framework of oversight.

To this end the trade group and six of the largest dealer firms have been working closely with the Securities and Exchange Commission to hammer out a set of rules governing the use of derivatives. SEC Chairman Arthur Levitt hopes to have tangible results by fall.

In a recent letter to House Energy and Commerce Committee Chairman John Dingell, the association said the recent spate of congressional activity concerning possible derivatives regulation for non bank dealers was ill-conceived and that any effort to propose solutions to an ill-defined problem is "a recipe for future problems."

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