Financial regulators have urged the Congress to boost their power to oversee derivatives beyond a proposal by the U.S. government, The Wall Street Journal reports. The proposal has loopholes, according to the Securities and Exchange Commission (SEC) Chairman, Mary Schapiro.
The U.S. is planning to draw oversight lines between the SEC and the Commodity Futures Trading Commission (CFTC). The SEC will be given oversight for most securities-based derivatives, while the CFTC will have oversight of broad indexes, such as the S&P 500 stock index, and all other derivatives. Schapiro said it leaves similar products under different regulations.
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