ALERT: House Agriculture Committee Marked-up and Reported the “Derivatives Markets Transparency and Accountability Act of 2009” (H.R 977)

    12 February 2009

    On February 12, 2009, the House Agriculture Committee marked up and reported the "Derivatives Markets Transparency and Accountability Act of 2009" (H.R 977), a bill introduced by Chairman Collin Peterson (D-Minnesota) that strengthens the regulation of over the counter (OTC) derivatives. This update summarizes key provisions of the legislation, including: (1) CFTC authority to suspend credit default swaps (CDS) trading; (2) requirement for clearing house processing of OTC derivatives through CFTC- or SEC-regulated clearing organizations with CFTC authority to exempt contracts from the clearing requirement; (3) trading limits to prevent excessive speculation; (4) transparency measure for CFTC detailed reporting and disaggregation of market data; (5) exemption for carbon offset credits and emission allowances; (6) CFTC authority to prosecute criminal violations of the Commodity Exchange Act; and (7) Diversity Requirement for Boards of Trade.