U.S. regulators voted in favor of limiting financial institution ownership of derivatives clearinghouses, exchanges and trading platforms to 20% and capping ownership of venues that clear securities-based swaps at 40%, Bloomberg News reported.

Securities and Exchange Commission members voted unanimously to approve the proposal, which is designed to stop conflicts of interest in the derivatives market.

Regulators are looking to strengthen ownership limits within the $615 trillion derivatives market in an effort to enhance government response to the type of financial crises that struck the global markets two years ago, according to Bloomberg. Five banks, led by Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) control 97% of the U.S. derivatives market, Bloomberg said.

The Commodity Futures Trading Commission made a similar proposal to the SEC's earlier this month.

Increase your money and finance knowledge from home

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:

OMG the SEC is awake !!!! And actually working??? Where were these bozo's 5 years ago???? Making money that's where? And don't even tell me it's a repub thing or a dem thing. Both these political parties caused this mess. And it goes back for 25 years. Wake up America -- the only thing Repub's want is the same thing the DEM's WANT POWER, it's not about US anymore.

October 14 2010 at 10:20 AM Report abuse rate up rate down Reply