The Chairman of the House Financial Services Committee released a discussion draft of new legislation designed to regulate over-the-counter (OTC) derivatives. The Over-the-Counter Derivatives Markets Act would define derivatives and swaps, and would give joint rulemaking authority over OTC derivatives to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). If these agencies fail to timely adopt uniform rules, the Treasury Department would be authorized to do so. The SEC and the CFTC would have regulatory authority over securities-based OTC derivatives, and the CFTC would be responsible for all other OTC derivatives. The new legislation would also exempt end users that utilize OTC derivatives to hedge their currency, interest rate and other risks from higher margin and capital requirements. The discussion draft has already raised some opposition both from the SEC and the CFTC. The full text of the discussion draft is available by clicking here.