On March 15, Senator Christopher Dodd introduced, as a discussion draft, a revised version of his financial regulatory reform bill. The revised bill includes changes to Title VII, which relates to over-the-counter (OTC) derivatives, including a revised definition of “major swap participant” and an amended transaction-based exemption for end-users. Title VIII of the bill also includes provisions that would grant the Federal Reserve Board authority to prescribe uniform risk management, payment, and clearing and settlement standards for systemically important “financial market utilities,” a term that is defined to include derivatives clearing organizations and securities clearing agencies.
The Senate mark-up of the new bill is scheduled to begin on March 22. In announcing the bill, Senator Dodd noted that a substitute derivatives title, being drafted by Senators Reed and Gregg, may replace current Title VII of Senator Dodd’s bill during the mark-up. In addition, the Senate Agriculture Committee is expected to introduce a separate OTC derivatives bill in early April.
The text of the new bill introduced by Senator Dodd is available here.