Likely OTC Derivatives Plan

Excerpts from Reuters article about the Administration's plan for regulating Over The Counter (OTC) derivatives:

In another sign that a merger is unlikely between the Securities and Exchange Commission and the Commodity Futures Trading Commission, the sources said the agencies could split oversight of OTC derivatives under the legal language they are working on for eventual submission to Congress.

The SEC, the larger and older of the two agencies, may take charge of regulating credit default swaps, a type of OTC derivative, for publicly traded companies, one source said.
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In the United States, four large banks control over 90 percent of the derivatives market: JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc, and Goldman Sachs Group Inc.
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A key feature of the administration's plan will be to move more OTC derivatives trades through central clearinghouses or, in the case of standardized instruments, onto exchanges.

Customized instruments unsuited to such treatment would be subjected to more record-keeping, under the proposed changes.

The complete Reuters article is at http://www.reuters.com/article/businessNews/idUSTRE55A0LK20090611.