On August 11, 2009, the Treasury Department unveiled proposed legislation regulating the over‑the‑counter derivatives market, the “Over-the-Counter Derivatives Markets Act of 2009” (the “Proposed Act”). The Proposed Act is based on reforms outlined in the Treasury’s white paper on financial regulatory reform (the “White Paper”) issued in June 2009 (as discussed in the June 23, 2009 Alert). The Proposed Act is lengthy and, as promised in the White Paper, contemplates wide-ranging changes to the over-the-counter derivatives market, while falling shy of more radical reforms such as an outright prohibition on credit default swaps (“CDS”). A separate Goodwin Procter Client Alert detailing the proposed legislation will be issued later this week.
Alert August 18, 2009