Derivatives Markets Transparency and Accountability Act of 2009

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The Derivatives Markets Transparency and Accountability Act of 2009 (H.R. 977), was passed by the House Agriculture Committee on February 12, 2009. It was designed to amend the Commodity Exchange Act to bring greater transparency and accountability to commodity markets.[1] The Act primarily addressed financial derivatives, including authorizing the CFTC to suspend U.S. trading of “naked” credit default swaps under certain circumstances and requiring that most over-the-counter derivatives be cleared through central clearinghouses. It also requires carbon offsets and emission allowances to be traded on a designated contract market under CFTC oversight.[2]

The Act:

  • Prohibits the CFTC from giving a foreign board of trade's U.S-located members access to the CFTC electronic trading system and order matching system unless it meets requirement similar to those imposed on U.S. exchanges.[3]
  • Directs the CFTC to define and classify index traders and swap dealers for data reporting requirements and to set specific reporting requirements for those entities when they trade on designated contract markets, and other regulated trading venues.