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Cmte Financial Services (R)
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Committee Approves Legislation To Ensure Regulators Have Time To Get Derivatives Rules Right

Washington, May 24 -

The Financial Services Committee, chaired by Rep. Spencer Bachus, approved legislation today to give regulators additional time to write and review the rules governing derivatives.  H.R. 1573, approved by a vote of 30 to 24, addresses concerns raised by both Republicans and Democrats that the proposed Dodd-Frank rules governing derivatives could put U.S. firms at a competitive disadvantage to their foreign competitors.  The bill extends the rule writing deadlines on some provisions but leaves the Dodd-Frank Title VII reforms intact.  The legislation maintains the current timeframe for defining the key terms as well as the rules requiring reporting of all over-the-counter contracts.

Financial Services Committee Chairman Spencer Bachus said, “This is a common-sense bill that gives regulators additional time and information to engage in the proper due diligence needed to get the derivatives rules right from the start. H.R. 1573 will provide regulators with vital information about derivatives transactions to ensure transparency and market safety.”

During consideration of H.R. 1573, the Committee approved by voice vote an amendment offered by Chairman Bachus to maintain the original Dodd-Frank effective date for the regulators to finish the clearing rules by July 21, 2011. The Committee also approved by voice vote an amendment offered by Capital Markets and Government Sponsored Enterprises Subcommittee Chairman Scott Garrett to change the effective date of the derivatives title to September 30, 2012.