On Friday, the Securities and Exchange Commission and the Commodity Futures Trading Commission issued a joint report on the harmonization of regulation between the two agencies.
In our previous articles on the Regulation of Credit Default Swaps, published on September 26, 2008 and November 28, 2008, we described how regulators in the United States and Canada were addressing the issues of systemic risk and the instability of the financial system attributed to credit default swaps in the aftermath of the financial credit crisis that started in the summer of 2007.
If enacted, the proposal would provide novel regulatory authority related to OTC derivatives and other major market participants and repeal many changes that were made through the Commodity Futures Modernization Act of 2000.
On June 17, 2009, the U.S. Treasury Department (“Treasury”) submitted its report to Congress entitled “Financial Regulatory Reform A New Foundation: Rebuilding Financial Supervision and Regulation” (“Report”).
On June 17, 2009, the Obama Administration released its recommendations for reform of our financial regulatory system (the "Proposal"), and the Firm sent its clients and friends a memorandum summarizing the proposals.
The Obama Administration has now taken a major concrete step toward outlining its framework for regulatory reform of the financial markets in the United States.