Alert October 06, 2009

Chairman of House Financial Services Committee Releases Discussion Draft of Proposed Derivatives Regulation Legislation

Congressman Barney Frank, Chairman of the House Financial Services Committee (the “Committee”), introduced a new legislative proposal, the “Over-the-Counter Derivatives Markets Act of 2009” (the “Proposed Act”), on October 2, 2009.  The Committee will discuss the derivatives market reforms proposed by Chairman Frank at a hearing on Wednesday, October 7, 2009.  The Proposed Act is a revision of the Treasury’s proposed legislation regarding derivatives regulation which was submitted to Congress on August 11, 2009 (as discussed in the August 27, 2009 Goodwin Procter Client Alert).  Chairman Frank’s proposal follows on the heels of the “Comprehensive Derivatives Regulation Act of 2009,” submitted by Jack Reed, Chairman of Senate Banking Subcommittee on Securities, Insurance and Investment, to the Senate on September 22, 2009 (for further information regarding Senator Reed’s proposed legislation, please see the AlertSeptember 29, 2009 ).