Summary Box: Cap on trading stakes proposed

AP News
Posted: Oct 13, 2010 1:18 PM
Summary Box: Cap on trading stakes proposed

LIMITS PROPOSED: Federal regulators are proposing to cap the stake that banks and other market players can own in venues where derivatives are traded.

PREVENTING CONFLICTS: The Securities and Exchange Commission voted to seek public comment on the proposed rules, which are designed to prevent conflicts of interest in the operations of clearinghouses and exchanges for derivatives.

ENORMOUS MARKET: Derivatives, traded in an opaque $600 trillion market, are the complex investments blamed for hastening the financial crisis. The new financial overhaul law enacted this summer calls for subjecting them to new oversight.