Gary Gensler, chairman of the CFTC, made the comments following the announcement that Congress had passed the bill of financial reform.
He said: âThe Wall Street reform bill passed today is historic and comprehensive. Over-the-counter derivatives dealers will â for the first time â be subject to robust oversight for their derivatives activities.
âStandardized derivatives will be required to trade on open platforms and be submitted for clearing to central counterparties. This will greatly improve transparency and lower risk in the marketplace.â
According to the Financial Times, new legislation will apply to clearing houses, traders and dealers in derivatives.
The CFTC is expected to collaborate with the Securities and Exchange Commission on drawing up and implementing many of rules.
Reforms passed by the US Senate include banning proprietary trading among banks and giving the government the power to break up any institution deemed âtoo big to failâ.
By Jim Ottewill