Democrats Introduce Bill To Increase Oversight Of Derivatives (With Delta Strategy Group Summary)

Senators Elizabeth Warren (D-MA), Mark Warner (D-VA) and Representative Elijah Cummings (D-MD) introduced the Derivatives Oversight and Taxpayer Protection Act. The bill amends the CEA to strengthen federal oversight of derivatives.

The proposed legislation would:

• direct the CFTC to collect user fees from financial firms in order to cover its budget, an action intended to help the CFTC manage its increased oversight responsibilities under the Dodd-Frank Act;
• enhance penalties for violations from $140,000 to $1 million for individuals, and from $140,000 to $10 million for other entities, while providing an alternative measure that triples (i) either the monetary gain of the violator or the losses caused by such violation, and (ii) the amount of any penalty for repeat offenders;