Among the financial reforms that President Obama will announce today is a reformation of the regulatory structure overhanging derivatives trading, according to the Wall Street Journal.
Obama is looking to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to work together to “police and prevent fraud” in regards to the derivatives market.
Says a draft of today’s speech: “All OTC derivatives markets, including CDS (credit default swaps) markets, should be subject to comprehensive regulation that addresses relevant public policy objectives.”
Today’s speech will include sweeping oversight reform on many over-the-counter derivatives products, with additional regulatory fixes to the way hedge funds and other private capital is monitored.