In Dodd-Frank Slap, Looser Derivatives Rules Approved by House Panel

On Wednesday, the House Financial Services Committee voted to send on three pieces of legislation that are designed to loosen derivatives rules put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

They are H.R. 2586, the Swap Execution Facility Clarification Act; H.R. 2682, the Business Risk Mitigation and Price Stabilization Act; and H.R. 2779, to exempt inter-affiliate swaps from certain regulatory requirements put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The three bills will now move on for a full House vote.

Rep. Barney Frank, D-Mass., ranking Democrat on the House Financial Services Committee who co-authored the landmark Dodd-Frank financial reform legislation, had announced Monday that he would not seek reelection in 2012, and will retire after completion of his term next December.

H.R. 2586, according to the committee’s website, directs the CFTC and SEC to devise rules for swap execution facilities and security-based swap execution facilities (SEFs) to carry out congressional intent for SEFs to serve as an alternative to exchanges and to provide an execution facility for illiquid or thinly traded swaps.