WASHINGTON — The Treasury Department set its sights on tough regulation for over-the-counter derivatives with the release Tuesday of legislative language that is stricter than other recent proposals.

The Treasury's bill would let bank regulators set margin and capital requirements for banks entering into derivatives contracts. All firms using derivatives, whether they were trading them as major market participants or forging swap agreements as end users to hedge risk, would have to have their standardized contracts centrally cleared and traded over regulated exchanges.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.