US Senate Passes Comprehensive OTC Derivatives Reform Legislation

June 02, 2010
The U.S. Senate recently passed the Restoring American Financial Stability Act of 2010 (the “Senate Legislation”). Title VII of the Senate Legislation, the Wall Street Transparency and Accountability Act of 2010 (“Title VII”), is similar in scope to the derivatives reform legislation passed by the House of Representatives in December 2009 (the “House Legislation”) and has the potential to radically alter the landscape of the over-the-counter (“OTC”) derivatives markets. This update examines the OTC derivatives that are covered, the impact of Title VII on major swap participants and swap dealers, and compares the provisions of Title VII with analogous provisions in the House Legislation.