The Chairman of the Senate Banking Securities, Insurance and Investment Subcommittee recently introduced a bill designed to create “a comprehensive framework” to regulate all over-the-counter (OTC) derivatives. The Comprehensive Derivatives Regulation Act of 2009 would subject all securities-based derivatives, or those that “can be used as synthetic substitutes for securities,” to regulatory jurisdiction of the SEC, and would give the Commodity Futures Trading Commission authority over all other derivatives. Similar to the Obama Administration’s proposal, the proposed bill would also require “standardized” derivatives to be cleared through clearinghouses, establish capital and margin requirements, create new recordkeeping and reporting requirements, as well as grant regulators authority to set position limits, oversee marketing of derivative products to certain investors and regulate any “new derivative product.” Full text of the bill is available by clicking here.