H.R. 742 Increases Global Swaps Market Transparency and Regulatory Corporation
May 07, 2013
Congressman Bill Huizenga joined us during the markup of H.R. 742 to discuss swap derivatives and why they're important to a range of industries and businesses.
To ensure market transparency and global regulatory cooperation, the Dodd-Frank Act requires U.S. regulators to share information about these financial tools with their foreign counterparts. Unfortunately, the process Dodd-Frank prescribes for this data-sharing has proven to be unworkable for regulators.
Without a fix like H.R. 742, foreign regulators may end up establishing their own swap derivatives databases to ensure they have the information they need to perform their own supervisory duties. This would result in the creation of multiple databases, needlessly duplicative data collection efforts, and the possibility of inconsistent or incomplete data being collected and maintained across multiple jurisdictions.
H.R. 742, passed unanimously by the full committee, seeks to address this issue and ensure American job creators can continue to transparently utilize these important financial instruments without undue risk.