On May 22, SEC Chairman Mary Schapiro gave testimony before the Senate Committee on Banking, Housing, and Urban Affairs regarding the SEC's implementation of derivative reform required by Dodd-Frank. Chairman Schapiro provided background on the requirements of Title VII of Dodd-Frank which mandates oversight of the over-the-counter derivatives market and requires the SEC and CFTC to adopt rules covering many aspects of the OTC markets. She also explained that the SEC has jurisdiction over "security-based swaps" while the CFTC has authority over "swaps," which constitute the majority of the OTC derivatives market. Chairman Schapiro emphasized that the SEC is cooperating with other regulators, including those outside the US "in an effort to foster the development of common frameworks and to help ensure a level playing field for market participants." She then provided an overview of the SEC's progress with its rulemaking agenda in this area, outlining the next steps the agency plans to take.
The full text of Chairman Schapiro's testimony is available at http://www.sec.gov/news/testimony/2012/ts052212mls.htm.