"The Major Derivative Provisions of the Financial Markets Reform Bill Passed by the House"

On December 11, 2009, the House of Representatives passed the Wall Street Reform and Consumer Protection Act of 2009 (the "House Bill" or the "Bill").  The Bill passed the House by a very narrow margin of 223 to 202, with all of the House Republicans voting against it.  The Bill would implement a comprehensive response to a broad range of problems that the House Democrats have identified in the financial markets, including the over-the-counter ("OTC") derivatives markets.  Title III of the Bill sets forth an extensive new scheme for the regulation of OTC derivatives.

The Senate is developing its own financial markets reform bill.  Action on the Senate bill is expected to occur at some point in 2010.  If and when the Senate passes such a bill, any differences between the Senate bill and this House Bill will have to be resolved before any new derivative provisions become binding law.

This Stroock Special Bulletin summarizes the major derivative provisions of the House Bill.