WASHINGTON (AP) — A U.S. agency is seeking to expand its authority to regulate risky trading overseas by affiliates of U.S. banks.
The proposal from the Commodity Futures Trading Commission comes just weeks after JPMorgan Chase announced it lost billions because of high-risk trades that took place at its London operation.
The CFTC commissioners voted this week without public debate to send the proposal out for public comment. It would extend its oversight of derivatives to trading that takes place overseas. Derivatives are risky financial instruments that have been blamed for hastening the financial crisis.
The 2010 financial overhaul law gave the CFTC the authority to define which overseas transactions should be subject to oversight. The change would take effect in about a year.