The Financial Reform Act: Derivatives

On June 30, 2010, the House of Representatives approved the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Financial Reform Act, a comprehensive and expansive set of financial reforms widely thought to be the toughest changes to financial regulation in the United States since the Great Depression. The Senate approved the Financial Reform Act on July 15, 2010, and President Obama signed it into law on July 21, 2010. Title VII of the Financial Reform Act, entitled "Wall Street Transparency and Accountability," substantially overhauls the regulation of the over-the-counter derivatives markets. This Update provides highlights of the Financial Reform Act as it relates to derivatives.