The watchdog plan apply to certain swaps - or derivatives - in all fairness, interest rates and foreign exchange markets to cover risks and enable a potential buyer to request a price from a single or multiple vendors on regulated exchanges.
The SEC and the Commodity Futures Trading Commission (CFTC) were affected by the Congress to reform the almost $ 600 billion (370 billion to £) market in derivative financial instruments currently traded largely in a so-called "over the counter" fashion. Regulators have already proposed certain swaps sold on what is called the "trade execution facilities" (SEFs), who would act as exchanges.
Lack of regulation the derivatives market has been awarded by many help us because of the financial crisis.
"Our goal is to provide a framework that allows market based security to continue to develop in a manner more transparent, more efficient and more competitive, said Mary Shapiro, Chair of the SEC.
Wall Street banks have expressed their concern about the manner in which reforms set out in the Dodd-Frank last summer law will apply, with greater transparency in the establishment of derivatives prices threatening to make it less profitable. However, the creation of new exchanges or SEFs should generate profits for those that apply to their execution, including ICAP based in London.
The SEC has shut down its recent proposals for a 60-day consultation.
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